New Home Sales Plunge Again
Unfortunately, the dismal outlook for sales of new homes in the United States continues. There was a significant decline in sales throughout the month of January, which was also the worst month for such sales in almost 47 years. So, it looks like not many people are moving to new homes.
The U.S. Commerce Department considers almost 600,000 new home sales to be a healthy market – the approximated number for this year may only be slightly less than 300,000. In 2010, only 322,000 new homes were sold, which was also down from 2009. The department has been tracking new home sales and relocations since 1963.
Though we keep hearing news that the economy is improving, the same can’t be said about the housing market. There is still a very weak demand, which means fewer people are moving. This is definitely a sign of the high unemployment rate across the country. Though the demand is low, the supply is actually quite high.
At the current sales pace, there are enough new homes on the market to last almost eight months. So, if people decide to move in the next year or so, there should be plenty of options, if the price is right. The trends aren’t quite the same for used homes.
The number of used homes sold throughout January actually increased, but the overall prices continue to fall. In fact, more than half of the country’s major cities have hit all-time lows in the last month. The mortgage rates dipped to 4.95% during this time as well, partially due to the unrest in the Middle East. So, if you are able to relocate and buy a new house, this may be a good time before rates increase again.
– Lance GroomsBack to all blogs
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