News Article From: 05-25-2006
The article, Backlog of unsold homes in U.S. reaches record high, from the Arizona Republic, reports that the number of unsold homes remaining on the market at the end of April rose to the highest level on record, according to the U.S. Commerce Department, further evidence that the red-hot national housing market is cooling. Sales of single-family homes rose by 4.9 percent in April and the median U.S. home price stood at $238,500, up just 0.9 percent from a year ago, far below the double-digit price gains sellers were enjoying last year at the peak of the housing boom. "Housing is holding up better than we thought given how much mortgage rates have gone up, but we still expect it to weaken as the year goes forward," said David Wyss, chief economist at Standard & Poor's in New York. Wyss said he expects home sales to fall 10 percent this year, while the National Association of Realtors is predicting a 2.5 percent decline.