The National Association of Realtors reported that sales of existing homes were down 0.8 percent last month, a bigger decline than had been expected. For the year, sales fell by 8.4 percent, the biggest annual decline since 1989, when existing home sales fell by 14.8 percent.
David Lereah, chief economist for the Realtors, said that even with the December setback, he still believes that sales of existing homes have hit bottom and will start to gradually improve.
He said that in 2005, 40 percent of the market represented purchases of second homes and investors buying homes looking to resell them for quick profits.
He said that speculators had now left the market and that should leave sales at a more sustainable level.
"With fingers and toes crossed, it appears that we have hit bottom in the existing home market," he said.
Fingers and toes crossed? Do you also need a little hug from your mommy?
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