Existing Home Sales Down in April

Existing home sales took it on the chin again in April with consumers purchasing homes at an annualized rate of 4.34 million units, a slight decline from March but a 16% falloff from the same period last year. The largest declines (year-over-year) were in the Midwest and South, down 16.5% and 16.2%, respectively. The sales figures were compiled by the National Association of Realtors which blamed the poor performance, in part, on "restrictive lending practices" by mortgage companies. According to NAR, there is now a 10.7 month supply of existing homes for sale compared to 8.3 in April 2007. Stephen Stanley, a housing analyst for RBS Greenwich Capital, noted that the only geographic region to post an advance was the West. "Anecdotal reports and local data indicate that prices have taken a beating in California, Las Vegas, and Phoenix, and foreclosures and sales of foreclosed properties seem to be much heavier in California than anywhere else in the country." He said this suggests "the intense downdraft in prices in troubled markets, some of which is being dictated by foreclosure activity, is beginning to draw in buyers."