Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

New home sales up 6.1% over the year, lowest inventory levels ever

A small improvement

Although beating economists’ projections by a few thousand, new home sales dropped 2.3 percent in August according to the U.S. Commerce Department. Despite weak housing numbers, sales are up 6.1 percent from August 2010, a marked improvement for a battered sector.

Taking into account that Hurricane Irene hit the Northeast and paused much real estate activity, the region saw a 13.6 percent dip in sales which brought the nation down as a whole, but without that natural disaster, it is unknown how much better this region would have performed. The Western region declined 6.3 percent while the South dropped 2.4 percent. Home sales in the Midwest, however, rose 8.2 percent in August, helping to keep the national average remain relatively stagnant.

Breaking records

New home inventory dropped to 162,000 units in August, a new record low, but the slowed sales led to a slight increase in the months’ supply of newly constructed homes to 6.6 months.

“The number of foreclosed homes on the market continues to pose major challenges, not just to builders who have to compete against that low-priced product, but also to buyers who need to sell an existing home before trading up to a new one,” said Bob Nielsen, Chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. “As the price data show, entry-level homes are generally driving the new-home market right now, and that’s because first-time buyers don’t have another home they have to sell.”

Advertisement. Scroll to continue reading.

“As builders in our recent surveys have been telling us, the lull in new-home sales continued even as mortgage rates held at extremely favorable levels in August. This is partly because continuing tight credit conditions are dissuading even well-qualified buyers, who are having trouble obtaining the good rates that are out there,” said NAHB Chief Economist David Crowe. “However, on a positive note, today’s numbers confirm that builders are wisely refraining from adding to the inventory of unsold new homes, which is currently at a 49-year low.”

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

28 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Real Estate Technology

(TECH NEWS) It turns out that Internet of Things, like smart bulbs in homes, are not secure and give up your info - here...

Real Estate Marketing

(MARKETING) Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Real Estate Marketing

(MARKETING) Conduit is a CRM that does more than CRM, it analyzes your networking data to help you see how to improve your relationships.

Real Estate Corporate

(REAL ESTATE) Zillow has long been a data powerhouse, but a lawsuit about a $150M listing offers a look into listings claims.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.