![]()
- The Secret Lives of Traders—Seeking the Next Hot Thing
- China January Trade Surplus Soars as Imports Crumble
- Strip Greenspan of His Knighthood: SocGen Strategist
- Markets Finally Get Greek Deal —So Where's the Rally?
- Warren Buffett: Stocks Will Outperform Gold and Bonds
- Alibaba Plans to Buy Back Yahoo Stake, Go Private
- Greece Deal Fails to Convince, EU Demands More
- 'Mortgage Deal from Hell' Hurts Sound Borrowers: Bove
- Clint Eastwood: Super Bowl Ad Endorses No One
MOST SHARED
- China January Trade Surplus Soars as Imports Crumble
- Jobs You Can Do Forever
- Lightning Round: Yahoo!, CEC Entertainment, Standard Pacific and More
- China City Raises Cash Subsidies for Home Buyers
- Euro Near Two Month Highs After Greece; Outlook Uncertain
- Gold in Tight Range After Greece Deal, CME cut
- Tesla Unveils First SUV: Model X
- US Crude Dips After Three Days of Gains
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- Cramer: Berkshire Hathaway Is a 'Screaming Buy'
MOST POPULAR
HOT ON FACEBOOK
December Home Sales Fall 2.2%; Prices Drop for Year
![]() |
AP |
Sales of existing homes fell in December, closing out a horrible year for housing in which sales of single-family homes plunged by the largest amount in 25 years.
The median home price dropped for the entire year, the first time that has occurred in four decades.
The National Association of Realtors reported that sales of single-family homes and condominiums dropped by 2.2 percent in December to a seasonally adjusted annual rate of 4.89 million units.
For the year, sales of single-family homes were down by 13 percent, the biggest drop since a 17.7 percent plunge in 1982. The median price for a single-family home dropped 1.8 percent to $217,000.
That was the first annual price decline on records going back to 1968. Lawrence Yun, the Realtors' chief economist, said it was likely that the country has not experienced a decline in housing prices for an entire year since the Great Depression of the 1930s.
The new figures underscored the severity of the slump in housing, which has been battered for the past two years after enjoying a boom in which sales set records for five consecutive years.
The housing bust has sent shock waves through the entire economy as defaults have risen, resulting in multibillion-dollar loses for big financial firms whose investments in subprime mortgages have gone sour.
There is a concern that the housing and credit troubles could be enough to push the country into a full-blown recession. After global stock markets experienced a sharp sell-off earlier this week, the Federal Reserve announced a bold three-quarter point cut in a key interest rate and held out the promise of more rate cuts to follow.
The Bush administration and congressional leaders are trying to quickly wrap up negotiations on a stimulus package in an effort to boost consumer and business confidence.








