Home Prices Still Falling, But the Pace Is Slowing

New York Times (08/27/08) P. C1; Grynbaum, Michael M.
The Commerce Department reports a 2.4-percent jump in new-home sales to an annual pace of 515,000 in July from the prior month, following a report from the National Association of Realtors indicating a 3.1-percent jump in existing-home sales during the same period. Year over year, however, new-home sales were down 35.3 percent, and the median new-home price slipped 6.3 percent to $230,700. The S&P/Case-Shiller home price index posted a 15.9-percent decline during the 12 months ended in June, and analysts believe additional decreases are necessary before the housing market can rebound. "The biggest declines, they're all behind us now," says Global Insight chief domestic economist Nigel Gault. "But that doesn't mean we're in any sense ready to move up. Or that we're ready for sales to accelerate. Or for prices to flatten out."