News Article From: 08-16-2006
The first article, Home sales slowdown seen spreading, from MSNBC.com, reports that the slowdown in the once sizzling housing market is spreading, with 28 states and the District of Columbia reporting spring sales declines, led by big drops in former boom areas of Arizona (down almost 27 percent), Florida and California. Nationally, sales were down 7 percent from April through June compared with the same period in 2005, according to the report released by the National Association of Realtors. The report showed the biggest declines occurred in states that were enjoying red-hot sales during the five-year housing boom. In all, 20 states showed sales increases, led by Alaska, Arkansas, Texas, North Carolina and Vermont. In a separate survey of price changes in 151 metropolitan areas, the Realtors reported that 26 metro areas experienced outright price declines while 37 areas were still enjoying double-digit price increases.
The second article, Arizona leads nation in home sales decline, from the Phoenix Business Journal, also reports on the NAR report released yesterday stating that Arizona led the nation with a 27% decrease in sales for the second quarter 2006. It quotes Jay Butler, director of the Arizona Real Estate Center at ASU saying that Arizona's housing market is returning to the more normal levels reported in 2003, before the housing boom of 2004-2005, which was driven largely by investors.