New home sales down
According to the US Commerce Department, new home sales fell in February 17%, making it the lowest sales since recording began in 1963, and median prices dropped 14%, hitting their lowest level in over eight years. Sales dipped almost 30% from February 2010.
When will the new home sector rebound?
Economists are not in agreement as to when the new home sector will recover, but builders’ stock prices are falling as this news follows up news that permits hit their lowest level recorded as builders tighten their belt with 23% fewer housing starts in February and they are focusing on current inventory in a continued era of a market flooded with foreclosures that sell at prices significantly lower than a builder typically can.
The resale market is not in the exact same situation despite sliding prices, but could projections of the real estate market hitting bottom and a rebound coming in 2012 be true with numbers like these or are we looking at a 2013 or 2014 recovery?
