My New Blog

Fed Chairman Bed Bernanke and other coleagues voted unanimously to sustain their target for the federal funds rate, the interest that banks charge each other, at 5.25 percent, where it has been stable for over a year.

The Federal Reserve decision came after a volatile time on Wall Street as investors have been taken back by troubles in global credit markets coming from a upward trend in defaults on many subprime mortgages.

30-year fixed-rate mortgage: 6.69%, down from 6.73% the previous week.

Existing homes sales nationwide: down 3.8% in June to a seasonally adjusted annual rate of   575,000,000 million units. 

Existing condo sales nationwide: down 6.3% in June to a seasonally adjusted annual rate of 740,000 units; median condo price in the U.S.: $228,900, increased 2.6% from a year ago. 

New home sales in the U.S.: down 6.6% in June to a seasonally adjusted annual rate of 834,000 units; median new home price: $237,900, down 2.2% from a year ago. 

    The latest existing home stats are out and the news is what you’d expect: home sales are down (-30% compared to June of last year), as are median prices ($243,200, a 5% drop from a year ago). But let’s put things in perspective. The Florida housing market has enjoyed unprecedented growth in the past five years. Consider the median sales price for an existing single-family home. In June, it was $243,200, a 5% drop from a year ago but a 70.8% increase since 2002. And it’s still higher than the national average. According to NAR, the median price of a home nationwide was $223,000.

    There is good news: Existing home sales are expected to recover in 2008 and pick up by the end of this year, according to NAR’s lat­est market outlook. “It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market,” says NAR Senior Economist Lawrence Yun. “The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, and favorable mortgage interest rates.”

    Statewide sales of existing condos dropped 28% in June compared to a year ago, and the median price fell 3% to $213,200. But Florida economist Hank Fishkind is quick to point out that “we have already seen the worst for this cycle. There is no evidence of sharp price drops anywhere in the state.”