COLLEGE PARK, Md., Oct. 25 (UPI) -- U.S. existing home sales are not expected to firm until spring 2007 at the earliest, an economist said Wednesday.
The National Association of Realtors reported September existing home sales were 6.16 million, down from 6.30 million in August and down from 7.20 million in September 2005. The consensus forecast was 6.23 million.
Inventory of existing homes remained high, Peter Morici, economist at University of Maryland, said.
"The large inventory of unsold homes along with the weak pending home sales index indicate the housing market adjustment will continue through at least the spring of 2007," he said.
"Through next spring, home sales are likely to continue to be weak, home prices are likely to continue falling, and the number of unsold homes will remain high. Quite simply, the housing market is burdened by a glut of sellers and shortage of buyers."
He blamed a "speculative frenzy" of recent years for the sector's weakness.
