New Home Supplies Fall To An 18-Month Low
If you plan to buy of new construction in 2012, don't expect today's low prices. Like everything in housing of late, the market for newly-built homes appears to be improving.
If you plan to buy of new construction in 2012, don't expect today's low prices. Like everything in housing of late, the market for newly-built homes appears to be improving.
Home builders continue to sell homes and work through inventory.
Sales of newly-built homes slipped in July, falling 1 percent as compared to June. Home buyers closed on a seasonally-adjusted, annualized 298,000 units, the lowest reading since February.
Last month, the number of new homes sold on an annualized, seasonally-adjusted basis tallied 319,000. The May reading is the second-highest of the year, and 6 percent above the current 12-month average.
Sales of newly-built homes surprised Wall Street, jumping 7 percent to an seasonally-adjusted, annualized 323,000 units last month.
Sales of newly-built homes plunged 17 percent to an seasonally-adjusted, annualized 250,000 units in February, and the supply of new homes rose to 8.9 months in February -- a 1.5 month jump from January. But there's more to the story.
The 2010 housing market finished on a tear, and that momentum is carrying forward into 2011. Expect the spring season to show strongly, and for home prices to be on the rise.
The press is referring to the May New Home Sales report as "poor". A closer look, however, shows that may not be the case.