November 29, 2006
Record Drop in House Prices
Record Drop in House Prices
According to an industry group, the price of existing homes sold in October fell for the third straight month and posted the biggest drop on record adding it expects weakness in pricing to drag on into next year.
The National Association of Realtors said that the median price of a home sold in October was $221,000, the same as in September, but down 3.5 percent from October 2005.
The previous record drop was a 2.1 percent decline in November 1990, the real estate group said.
While month-to-month declines in home prices are not uncommon, year-to-year drops had been rare before the recent housing slump.
August was the first month in 11 years to see such a decline. September was originally reported as a record 2.2 percent drop, but a revision in those numbers put that price decline at 1.8 percent.
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