Home Sales Continue Plunge

WASHINGTON — The government says U.S. home prices posted a first-quarter decline bigger than any in the 17-year history of the data. The Office of Federal Housing Enterprise Oversight (OFHEO) says home prices fell 3.1% in the first quarter compared with a year ago. The index also fell 1.7% from fourth quarter 2007 to the first quarrter of 2008, largest quarterly price drop on record. "The large overhang of real estate inventory awaiting sale continues to force price declines in many areas, but particularly in places that had seen very sharp appreciation," Patrick Lawler, the agency's chief economist, said.

Sales of existing homes fell for the eighth time in nine months, with the backlog of unsold single-family homes rising to the highest level in more than two decades. The National Association of Realtors said Friday that single-family home sales dropped 1% to 4.89 million units, matching the all-time low set in January. Inventories of unsold homes surged 10.5% to 4.55 million units at the end of April. At the current sales pace that would put the supply of homes at 11.2 months' worth, highest since the association began tracking single family and condo properties together in 1999. For single family homes, at the current sales pace there were 10.7 months' worth, the biggest supply since June 1985 when it stood at 11.4 months.