US Housing Market Sinks Lower
New Home Sales Less Than Half Of Anticipated Number
By Dell Hill via Hot Air
Who’s up for some GOOD news today?
The Associated Press has some “good” news and some disturbing news on the housing front:
sales increased 1.3 percent last month to a seasonally adjusted annual
rate of 307,000, the Commerce Department said Monday. That’s less than
half the 700,000 that economists say must be sold to sustain a healthy
September’s figures were also revised down significantly to show a weaker pace than first estimated.
year’s 323,000 new homes sold were the fewest since the government
began keeping records in 1963. This year isn’t faring much better….
builders have stopped working on new projects because they can’t obtain
financing. The number of new homes for sale in the United States fell
in October to a record low of 162,000.
are also struggling to compete against cheaper re-sales, even as they
lower their own prices. The median sales price of a new home fell 0.4
percent in October from September, to $212,300.
The news isn’t much better on the existing home market.
Last week’s National Association of Realtors report,
referenced at the end of the AP story, also paints a mostly-bleak
picture. Even while existing home sales rose by 1.4% from September (on a
seasonally-adjusted basis) and 13.5% from October 2010 to a
seasonally-adjusted annual rate of 4.97 million, far short of the 6
million economists expect in a healthy market.
while the percentage of “distressed homes” sold fell to 28% from 30% in
September and 34% in October 2010, the median price slipped 4.7% from
October 2010 to $162,500. Worst of all, contract failures, defined by
NAR as “cancellations caused by declined mortgage applications, failures
in loan underwriting from appraised values coming in below the
negotiated price, or other problems including home inspections and
employment losses”, jumped to 33% in October from 18% in September and
8% in October 2010.”
Read the entire post from Hot Air by clicking right here.