New-home sales in the U.S. fell to the lowest level in a year in January and the number of properties on the market was the most ever, the first sign housing in 2006 may lose its luster after five record years.

Sales declined a greater-than-expected 5 percent to an annual rate of 1.233 million from a revised 1.298 million in December, the Commerce Department said today in Washington. The number of homes for sale rose to 528,000 in January, the most ever, from December's 515,000.
Bloomberg, February 23, 2006

Rise In Short Sales Indicates Troubled Housing Market
CLEVELAND -- A lot of people rely on the value of their house to bail them out of some circumstances, such as losing a job, going through a divorce or suddenly taking ill.

However, a tough economy and a flat real estate market may leave you short when the deal is done, reported 5 On Your Side's Adam Shapiro.

At Susan Gray's law office in Rocky River, a lot of the cases these days involve a short sale. People are selling their homes for less than they owe, and in some cases, for less than they are worth.

"We are seeing a lot of people having to bring money to the table. They are doing it, they make the sale happen, but they walk away with nothing," said White.

Even mortgage banker Thom Rankin is closing short sales, which just a few years ago were considered rare. "It concerns me that we are now seeing this happening, and I have been doing this for 30 years, and I have never seen short sales come as readily as these did," said Rankin.

NewsNet5 [Cleveland, Ohio], February 15, 2006