US house prices continue to tumble with no end in sight

Back in October 2006 we first reported US new home prices were plunging at the fastest pace in 36 years. Two years later, prices are still continuing to fall with no recovery in sight.

Last night it was reported new home sales fell 5.2% in October 2008 to an annual rate of 419,000 sales. Prices are also still contracting with the medium new house price falling 11.5% to US$287,500.

Sales of existing homes are no better, with a fall of 8.6% in sales for the month of November. The medium existing house price is now US$181,300, down 13.2% for the year – the largest drop since 1968 when the National Association of Realtors survey first began, with Market Watch suggesting it could be the biggest falls since the Great Depression.

» U.S. Nov. existing-home sales fall 8.6%; Home prices decline at fastest annual pace on record – Market Watch, 23rd December 2008.
» US house sales and prices tumble as recession bites – The Australian, 24th December 2008.
» US house sales fall again – The ABC, 24th December 2008