Housing Market Continues Slide

From the Times 'Plunge in Existing-Home Sales Is Steepest Since ’89':

-"Sales of existing homes plunged in March by the largest amount in nearly two decades, reflecting bad weather and increasing problems in the subprime mortgage market..."

- "The steep sales decline was accompanied by an eighth straight fall in median home prices, the longest such period of falling prices on record."

-"There was weakness in every part of the country in March."

- "The steep slump in housing over the past year has been a major factor slowing the overall economy. It has subtracted around 1 percentage point from growth since mid-2006."

Remember, a lot of people have been counting an improvement in housing to shore up [or at least not hinder] overall economic growth. All signs continue to indicate that a turnabout is not in sight. Expect housing to continue to take its toll on the broader economy for some time to come.

Also, keep in mind that there may be many more hidden surprises out there, especially if the continued cooling of the housing market leads to greater defaults/delinquencies in the mortgage market. [Specifically I am referring to the possibility of a de-rating of the mortgage backed securities which could conceivably trigger all sorts of hell in the financial markets.]