Via: Bloomberg.com
Sales of previously owned homes in the U.S. fell in April and the supply of unsold properties reached a record, signaling no let-up in the 27-month housing slump.Purchases declined 1 percent to an annual rate of 4.89 million, higher than forecast, the National Association of Realtors said today in Washington. The median price fell 8 percent from April last year, the second-biggest drop.
“There is no indication that things are improving,” said Christopher Low, chief economist at FTN Financial in New York, who forecast sales would drop to a 4.9 million pace. “Inventories will stay out of balance at least until the end of 2009 and prices will keep falling.”
Defaults on subprime mortgages have prompted lenders to restrict credit, while falling property values have given buyers who are still able to get financing reason to delay purchases. The slide in home values may hurt consumer spending, which accounts for more than two-thirds of the economy.
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