Contractor Talk - Professional Construction and Remodeling Forum banner

1 - 3 of 3 Posts

·
Registered
Joined
·
120 Posts
Discussion Starter #1
Sales of new homes dropped to a record low in May, according to new government figures released Wednesday, providing a gauge of the market’s dependence on a federal stimulus program.

The Commerce Department figures showed that new single-family homes sold at a seasonally adjusted annual rate of 300,000 in May, down 32.7 percent from the revised April rate of 446,000.

Mr. Greenhaus said the 32.7 percent drop was the largest since the government started compiling the data in 1963, surpassing the 23.8 percent decline in January 1994. The May sales rate is 18.3 percent below that of May 2009, when the figure was 367,000.


http://www.nytimes.com/2010/06/24/business/economy/24home.html?src=mv


...New home builds in AZ have been anemic at best even DURING the tax credit, so no surprise for us on the tip of the spear. Anyone in other parts of the country seeing things that make you think this is just a temporary dip, or another leg down for housing overall?
 

·
Registered
Joined
·
19 Posts
I’m not sure why people are so surprised by this. A lot of people bought homes before the tax credit expired, so of course sales are going to be way down right after the expiration. The same thing happened with cash for clunkers.

Some good news out of the report is that inventories of new homes declined by 0.5% in the past month. And depending on how you look at it, prices coming down by 9% yoy is good news as well, because it helps to increase affordability. But, it’s pretty hard to spin deflation into a positive thing. Anyways, there’s always next month.
 
1 - 3 of 3 Posts
Top