Housing market goes down by Zuzana Zelenakova

US Housing market experiences yet further decline as sales of existing houses are on their way down. This is the slowest sales pace on record. In addition, house prices are going down too as a great number of unsold houses exits on the market. Realtors don't have many reasons to cheer up because analysts predict that current tendency will persist even in the months to come. "With sales weak and inventories at extraordinary high levels, prices are likely to fall a lot more," said Joel Naroff, chief economist at Naroff Economic Advisors. "Eventually, sellers will end their denial and realize that if they want to unload their homes, they will have to cut prices even more." The National Association of Realtors informed on Monday that sales of family houses and appartments fell by 0.4 percent last month with number of 4.89 units sold per year. The average price of a house sold in January was $201.100 which represent 4.6 percent decline as compared to the previous year. Analysts further claim that on of the reasons for the current situation might be also the rising number of mortgage foreclosures which brings to the market more and more unsold houses. The situation on the housing market has been getting worse for the past two years as a result of financial institutions making their lending conditions more severe. It was their reaction to their immense losses on mortgages that have gone into default. "There is no end in sight for the housing disaster," said Ian Shepherdson working for High Frequency Economics.

related story: http://news.yahoo.com/s/ap/20080225/ap_on_bi_ge/economy;_ylt=AsQaVnLOd24gj.14WmgycEGs0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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