Record Drop of Homes Sales/Prices

Lastet Real Estate News
WASHINGTON (AP) -- Sales of new homes plunged by a record amount in 2007 while prices posted the weakest showing in 16 years, demonstrating the troubles builders are facing with a huge backlog of unsold homes.
The government reported that the median price of a new home barely budged last year, edging up a slight 0.2 percent to $246,900, the poorest showing since prices fell by 2.4 percent during the 1991 housing downturn.
The new report reinforced the view that housing is currently undergoing its worst downturn in more than two decades, with the slump threatening to surpass in some ways the severe housing recession of the early 1980s.
The housing weakness has dragged down overall growth and sent shockwaves through the rest of the economy including the financial sector, which is dealing with billions of dollars in losses in subprime mortgages. Some analysts are worried that the fallout could become so severe it will drag the entire country into a recession.
Appraiser Charlotte NC

Housing Slump Mecklenburg NC

"Home building and sales are falling more sharply in the Charlotte area than nationally, a sign the housing slump is worsening in what has been one of the country's stronger markets"

Some of the causes:
Multiple market forces at work
High foreclosure rates, tougher lending practices and rising prices for gas, food and other goods have slashed housing sales nationwide. The slowdown has threatened to push the economy into recession and prompted proposals for billions of dollars in tax rebates and other steps to stimulate spending.Some cities, including Miami, San Diego and Las Vegas, also have seen double-digit declines in housing prices, according to the S&P/Case-Shiller Home Price Index released Tuesday. Others were hurt further by regional economic woes, such as Detroit's fallout from the ailing domestic auto industry.
Double-digit housing declines

Appraiser Charlotte North Carolina