Housing Sales Fall in 40 States

The slump in housing deepened in the final three months of last year with sales falling in 40 states and home prices dropping in nearly half the metropolitan areas surveyed.

Formerly red-hot areas were among the hardest hit as the five-year housing boom cooled considerably in 2006. While some economists said they believed the worst may be over for housing, others predicted more price declines to come until near-record levels of unsold homes are reduced.

The National Association of Realtors said the states with the biggest declines in sales from October through December compared with the same period in 2005 were: Nevada, down 36.1%; Florida, down 30.8%; Arizona, down 26.9%; and California, down 21.3%. In all, the Realtors said sales declined in 40 states, six states showed gains, and one state, Utah, had no change in activity in the final three months of last year. Three states did not give enough information to calculate.

Nationally, sales declined by 10.1% in the fourth quarter compared with the same period a year ago. The national median price — the point where half sell for more and half sell for less — fell to $219,300, down 2.7% from the fourth quarter of 2005.