Sep 25, 2006 3:47 pm US/Eastern
Has The Housing Bubble Burst?
MIAMI (CBS4/AP) ―
Sales of existing homes fell nationally and in Florida in August as the once-booming housing market slows further.
The National Association of Realtors reports that existing home sales slipped by point-five percent to a seasonally adjusted annual rate of six-point-three million units. It's the fifth straight month with a decline.
The slowdown in sales was weighing on home prices, with the median price of an existing home sold in August dropping to 225-thousand dollars, 1.7 percent below August 2005.
In the once-hot Florida market, the drop was more marked. The Florida Association of Realtors reported a decrease of 34 percent from the 22-thousand-421 homes sold during the previous August. Months ago there was talk of Miami's 'housing bubble' bursting because of too much supply and not enough demand. Some might be feeling those effects of the dreaded burst.
Each of the state's 20 largest metropolitan areas saw a drop in sales for the second straight month.
The state realtor's group said the drop was partly attributed to rising mortgage rates and buyers seeking other options as some are priced out of the market. Statewide, the existing-home median price remained unchanged at 248-thousand-400 dollars from August of last year.
(© 2006 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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