Your Economy (No Politics)

[Bullwinkle]

Existing home sales fall to 2-year low nationally
By Jerry W. Jackson, Sentinel Staff Writer
February 28 2006, 11:02 AM EST


Existing home sales nationally fell to a two-year low in January, and the supply of unsold homes was the highest since 1998 as the real estate market continued its long-forecast cooling.

The National Association of Realtors said resales in January fell 2.8 percent to an annual rate of 6.56 million, compared with a revised 6.75 million in December.

Sales of existing and new homes are forecast to decline this year after five years of record gains, the Realtors group reported, as higher interest rates temper demand.

Analysts said the sales slowdown is good because it lessens the chances that there will be a bone-jarring plunge in home prices, the "bubble" bursting scenario that many experts have long debated.

The Orlando area hit a record high 12,015 existing homes for sale in January, according to previously reported numbers by the Orlando Regional Realtor Association.

But Metro Orlando sales in January were up 6.2 percent from a year ago, and the median price rose 25.4 percent to $242,050, though that was less than one percent higher than in December, continuing a price flattening that began in mid-year.

http://www.sun-sentinel.com/business/local/orl-bk-homesales022806,0,6569905.story?track=rss