Dec. Existing Home Sales Up Slightly

Sales of existing homes rose 6.5 percent in December, according to the National Association of Realtors report out this morning, but the bump is likely the result of a historic drop in sales prices.

Sales of existing homes rose to an annualized rate of 4.74 million units in December, the group said, up from an annualized rate in November of 4.45 million.

However, the median sales price of those homes dove 15.3 percent to $175,400, the lowest price since May 2003 and more importantly, the biggest year-over-year plunge since records began being kept in 1968.

Takeaway: The housing bust probably still has not found a basement. What may be needed, said one CNBC wag some weeks ago, is for builders to start bulldozing houses to reduce the huge inventory.

-- Frank Ahrens
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