Real-estate update

WASHINGTON - Sales of existing homes fell for a sixth straight month in September and the median sales price dropped on an annual basis by the largest amount on record, further documenting a lukewarm housing market.

The National Association of Realtors reported that sales of previously owned homes fell by 1.9 percent in September to a seasonally adjusted sales pace of 6.18 million units, the slowest sales rate since January 2004.

The median price of a single-family home fell to $219,800 last month, a drop of 2.5 percent from the price in September 2005. That was the biggest year-over-year price decline in records going back nearly four decades.

Housing, which had set sales records for both new and existing homes for five consecutive years, has been rapidly loosing altitude this year, as consumers were battered by rising mortgage rates, soaring energy prices and a slowing economy.

However, economists with the Realtors said they believed the housing decline could be hitting bottom.

"The worst is behind us as far as a market correction — this is likely the trough for sales," said David Lereah, the Realtors' chief economist. "When consumers recognize that home sales are stabilizing, we'll see the buyers who've been on the sidelines get back into the market."

I wouldn't bet on it.. Looking at jobs numbers and considering the looming impact of creative financing.. I think there may well be a big implosion coming.

There is also the impact of borrowing. The pace at which Americans have been spending is unsustainable. I keep asking who the people are that can afford these endless rows of half million dollar houses. The answer is, they really can't afford it, and there's going to be a lot of people who get their ass kicked by reality... and it's especially true when they reach retirement age and have nothing.