Existing Home Sales Resume Decline

Single-family existing home sales fell 3.3% in October as sales remain range-bound, but house prices continue to decline, down 11.2% from a year ago. The National Association of Realtors reported that sales of previously owned homes fell from a seasonally adjust annual rate of 4.58 million in September to 4.43 million in October - the same sales pace as in October 2007. Single-family sales have been bouncing between 4.25 million and 4.5 million over the previous 12 months. September's sales appeared to be a breakout. But now some economists are bracing for another leg down in sales due to deterioration in the stock market and economic conditions. Meanwhile, the Realtors report appears to show that prices of previously owned single-family homes are tumbling. In October, house prices are down 11.2% from a year ago. In September, NAR reported house prices were down 8.6% from September 2007.