New Home Sales Continue to Plummet
Areas of growth and signs of prosperity have begun to arise in the housing market, except for new home builders. The amount of sales for new homes has reached record lows. The number of new home sales has reached those in 1963. Sales for the first quarter have continued to fall, and there seems to be no hope for the remainder of the year.
The Commerce Department is reporting that the seasonal adjusted sales totals for the month of February were 308,000. This is an 2.2% drop from the prior month. The assemblage of these numbers can at times be volatile due to the small sample size and wide margin for errors. The exactness of the numbers may fall under scrutiny, but the basis for concern is upheld due to the consistent downfall that the numbers represent.
New home builders are hoping that the impending tax credit expiration will inspire potential buyers to purchase a new home. The end of the 1st quarter will determine if many of the nation's largest home builders will spend the rest of the year writing in black or red pens. Many market watchers agree that the 2nd - 4th quarters will not see the spike in sales that is anticipated for the 1st quarter. There is a small spike in sales anticipated in the 2nd quarter due to many Americans waiting on their tax refund checks to assist them with closing costs. The 3rd and 4th quarters sales have no impending programs to assist them optimistically.
Richard Dugas who is the chief executive of Pulte Homes Inc. stated at a conference in mid February that "In February 2009 we did see some areas of improvement, particularly as it relates to 08, and there are clearly going to be opportunities in 2010, along with some continued risk". This optimistic outlook may refer to the company's recent decision to change its product to a more standardized model that is cost effective and buyer friendly.
The national median home sales price in February 2010 was $220,500. This price may still seem high for many Americans across the country. Many homes outside of the metropolitan areas are selling far below that national average. It is not hard to find a traditional 3 bedroom; 2 bath home for less than $125,000.
The Commerce Department is reporting that the seasonal adjusted sales totals for the month of February were 308,000. This is an 2.2% drop from the prior month. The assemblage of these numbers can at times be volatile due to the small sample size and wide margin for errors. The exactness of the numbers may fall under scrutiny, but the basis for concern is upheld due to the consistent downfall that the numbers represent.
New home builders are hoping that the impending tax credit expiration will inspire potential buyers to purchase a new home. The end of the 1st quarter will determine if many of the nation's largest home builders will spend the rest of the year writing in black or red pens. Many market watchers agree that the 2nd - 4th quarters will not see the spike in sales that is anticipated for the 1st quarter. There is a small spike in sales anticipated in the 2nd quarter due to many Americans waiting on their tax refund checks to assist them with closing costs. The 3rd and 4th quarters sales have no impending programs to assist them optimistically.
Richard Dugas who is the chief executive of Pulte Homes Inc. stated at a conference in mid February that "In February 2009 we did see some areas of improvement, particularly as it relates to 08, and there are clearly going to be opportunities in 2010, along with some continued risk". This optimistic outlook may refer to the company's recent decision to change its product to a more standardized model that is cost effective and buyer friendly.
The national median home sales price in February 2010 was $220,500. This price may still seem high for many Americans across the country. Many homes outside of the metropolitan areas are selling far below that national average. It is not hard to find a traditional 3 bedroom; 2 bath home for less than $125,000.
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