{"id":3791,"date":"2005-12-23T15:18:31","date_gmt":"2005-12-23T22:18:31","guid":{"rendered":"http:\/\/bennett.com\/blog\/index.php\/archives\/2005\/12\/23\/housing-bubble-bursting\/"},"modified":"2005-12-23T15:18:31","modified_gmt":"2005-12-23T22:18:31","slug":"housing-bubble-bursting","status":"publish","type":"post","link":"https:\/\/bennett.com\/blog\/2005\/12\/23\/housing-bubble-bursting\/","title":{"rendered":"Housing bubble bursting"},"content":{"rendered":"<p>\t\t\t\tNew home sales declined 11.3% last month, the <a href=\"http:\/\/online.wsj.com\/article\/SB113534350997130497.html?mod=djemTEW\">biggest drop in more than a decade:<\/a><\/p>\n<blockquote>\n<p>WASHINGTON &#8212; New-home sales posted the biggest fall in nearly 12 years last month, while a strong surge in the volatile aircraft sector boosted demand for expensive manufactured goods.<\/p>\n<p>Amid mounting interest rates, sales of single-family homes decreased 11.3% to a seasonally adjusted annual rate of 1.245 million, the Commerce Department said Friday. The plunge was the deepest since sales fell 23.8% in January 1994. Wall Street expected an 8.7% slide.<\/p>\n<p>&#8220;The sharp drop in new home sales may be the first sign that the housing market is finally hitting a wall even if the level is still decent,&#8221; said Joel Naroff, president of Naroff Economic Advisors Inc. in Holland, Pa&#8230;<\/p>\n<p>The Commerce report on new home sales showed inventories climbed to a record last month, while prices tumbled. The average price of a home decreased to $283,300, down from a revised $290,600 in October. There were an estimated 503,000 homes for sale at the end of November, a record high. That represented a 4.9 months&#8217; supply at the current sales rate &#8212; the highest since 5.0 in December 1996.<\/p>\n<p>There have been other signs the housing market is cooling after years of climbing prices and brisk construction activity. For instance, U.S. existing-home sales in October fell 2.7%. Financing costs have been creeping upward. Freddie Mac data show the average 30-year mortgage rate was 6.33% in November, the highest monthly level since 6.49% in July 2002.<\/p><\/blockquote>\n<p>Excellent.\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New home sales declined 11.3% last month, the biggest drop in more than a decade: WASHINGTON &#8212; New-home sales posted the biggest fall in nearly 12 years last month, while a strong surge in the volatile aircraft sector boosted demand for expensive manufactured goods. Amid mounting interest rates, sales of single-family homes decreased 11.3% to &hellip; <a href=\"https:\/\/bennett.com\/blog\/2005\/12\/23\/housing-bubble-bursting\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Housing bubble bursting&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[],"class_list":["post-3791","post","type-post","status-publish","format-standard","hentry","category-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbifyw-Z9","_links":{"self":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/posts\/3791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/comments?post=3791"}],"version-history":[{"count":0,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/posts\/3791\/revisions"}],"wp:attachment":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/media?parent=3791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/categories?post=3791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/tags?post=3791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}