Housing Sales Plunge In March

Oversupply and tightened lending hit hard in already-weak market
By J. Kelman,  Newser User
Posted Apr 25, 2007 12:15 PM CDT
Housing Sales Plunge In March
For Sale Signs Multiply With Weakening Housing Market   (Getty Images (by Event))

Sales of previously occupied homes fell 8.4 percent in March, marking the biggest monthly drop since 1989 and ending hopes for a spring rebound. The new National Association of Realtors numbers reflect an oversupply of homes, lenders subdued by the sub-prime crisis, and bad winter weather, the Wall Street Journal speculates.

Even once-hot markets like Miami-Dade now have two years of housing stock languishing, as lenders eliminate options like no-money-down loans. The tougher standards are "really starting to bite," says a Monarch Beach, Calif., real estate agent. A few markets, though, have escaped the downturn: Prices rose in Seattle, Portland, and Dallas, the New York Times reports. (More housing market stories.)

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