Census and HUD say new home sales fell
Today in a joint release between the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single family homes in December 2009 fell 7.6%, the second month in a row of declining sales.
New home sales for the entire year fell 22.9% to a record low of 374,000 units. At the end of the December 2009, HUD noted that at the current price, there was (is) an 8.1 month inventory rate.
Uncle Sam’s plan losing steam?
Despite the first time buyer tax credit which stimulated the new home sector, the rush has lost is steam and builders are feeling the pinch.
Just this week, National Association of Home Builders has launched a press release and media blitz with talking points about the death of the entire housing market based on their slumping numbers (and of course, our response was that their claims are scandalous).
The sky isn’t falling however, as the report notes that the median sales price for a new home rose 5.2% from November (which was the biggest spike since April 2009). Despite slowing sales, the prices are rising nicely, so it’s not all doom and gloom across the board.
