Bad News: Sales of existing homes slide to a 10-year low, despite a drop in prices and a glut of available homes. [Reuters]

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  1. Angryrider says:

    What do you expect? We’ve wasted our money on iPhones and gas! If I had the money I’d buy and lease.

  2. legwork says:

    Glut? Wait until the hidden forclosures actually hit the market.

  3. Sandtigrr says:

    Well this makes sense. Why buy an existing used home when so many newly constructed homes are sitting unsold? Also isn’t it much harder to get a mortgage now? Another last point…where is the saturation point for homebuying? I have to assume that after all the years of boom we have come to a point where the majority of the homebuying public already has a home. What do the numbers show?

  4. blue_duck says:

    Good luck getting approved for the loans first for these houses if they’re still a little pricy.

  5. pollyannacowgirl says:

    Pardon my ignorance, but when they say things are at a 10-year high or a 10-year low, I don’t get too alarmed. Was everyone living in Hoovervilles 10 years ago? Everything is cyclical and things will get worse and then they will get better. If things get as bad as the Depression, then I will start to worry.

  6. mattwolff says:

    Well I just closed on a house last Friday so I’m doing my part to help! My monthly payment (mortgages + taxes) is about $35 more than what I was paying for rent, so I’m pretty confident I’ll be just fine.

  7. samurailynn says:

    @blue_duck: It’s not impossible to get a loan if you really are qualified. My parents just got a loan and they’re pretty middle of the road. The thing is, they’re purchasing something they can afford, and they usually pay all their bills.

  8. Jaysyn was banned for: http://consumerist.com/5032912/the-subprime-meltdown-will-be-nothing-compared-to-the-prime-meltdown#c7042646 says:

    “a glut of available homes”

    Supply & Demand much?

  9. Sudonum says:

    Mortgage requirements have thankfully tightened, however it is still relatively easy to get a home loan, even for as much as 95% LTV, depending on location, FICO score and Debit to Income. And yes, it is truly a buyers market right now and it’s going to get even better, if your a buyer.
    That being said, we just sold my deceased mothers house in Orange County CA, for $4000 less than we were asking in just over 30 days. We started out with what I thought was a high price and had 3 buyers in a bit of a bidding war. Shocked the hell out of me. But I’m not complaining.

  10. MorrisseyTheCat says:

    Actually, contrary to popular belief, it’s still pretty easy for the bad credit people to get mortgages. Responsible people can’t get mortgages, but our house just sold for asking price (high in one of the worst housing market areas there is right now)…thanks to n o $ down “gift” program/FHA mortgages. Sad, isn’t it…but at least it sold our house…and that’s the ONLY people buying right now.

  11. oldheathen says:

    My town’s one of the few that hasn’t seen a price decline, but my sense is that the market’s still very sluggish and it seems 90% of the flippers “gentrifying” the downtown area are now landlords.

    Note: a coat of paint and granite countertops in a rickety 800-sq. ft. house neighboring the projects is still just lipstick on a pig.

  12. timmus says:

    This article is really, really generic. Sure, the market is dead in places like California, but I’ve been curious for awhile how it’s doing in places like Des Moines, Albuquerque, and Albany.

  13. timmus says:

    And yes, it is truly a buyers market right now and it’s going to get even better, if your a buyer.

    I think we’ll be eating crow on that if the Senate passes the homebuyer bailout bill.

  14. Sudonum says:

    @timmus:
    Nah, that bill isn’t going to help that many people. There’s still too many people who can’t qualify, period. There’s still going to be a glut of inventory out there. Something along the lines of 2 years worth in some markets. I would go to “www.Realtor.com” and note the number of homes that “match your search” if the number starts dropping it might be a good time to buy. Of course you can also contact a realtor or the MLS in those areas and ask for those statistics, but watching Realtor.com saves you the aggravation and the realtor the time.

  15. papahoth says:

    @timmus: Was just in Florida. Its as bad as the news said. Have two cousins that were in the real estate business. The shame in Tampa is that so many of the beautiful old Florida style houses were being renewed along with the neighborhoods, but now that is grinding to a halt.

  16. VikingP77 says:

    I’m in Portland Oregon and have seen no difference in the housing market. The same crap that was on the MLS before all of this downturn is still there!

  17. timmus says:

    I would go to “www.Realtor.com” and note the number of homes that “match your search”

    That was a good reminder. Back when I lived in a tiny city of 30,000 last year I looked up how many properties were available on realtor.com. In September 2007, 153. I checked today and it’s 155. It’s a limited sample, but it’s an extremely interesting finding, and I’m guessing small towns are immune or the ripple hasn’t reached there yet.

  18. squablow says:

    I bet if you cut southern California out of the equation, the numbers would look much better. Sales are slow in my neck of Wisconsin, but prices aren’t falling.

  19. DH405 says:

    Sucks to live… anywhere but here.

    -Oklahoma City resident.

  20. Sudonum says:

    @squablow:
    Don’t forget about Florida. Florida has the double whammy of the housing bubble and prohibitive insurance costs, plus they need to work on some serious property tax reform.