Thursday, February 25, 2010
According to a report from the U.S. Commerce Department released on Wednesday, the new home sales dropped 11 percent in January from December reaching to the lowest record level. This made the sales hit record low since 1963 when US began to track the record.
New home purchases mark 6 percent of the housing market and the current sales rate indicates that there is a 9.1 months' inventory of new homes. The median price fell to $203,500 in January, the lowest since December 2003 making the sales drop to an annual pace of 309,000.
Before the report was released, Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd had said that even though the new home sales are at rock bottom levels, the housing correction is not over yet. "Everyone who was going to buy for the tax credit has already purchased a new home", he added.
Meanwhile, the Chief Executive Officer of Toll Brothers Inc., Robert Toll said in the statement that the housing market took several years to recover, following the downturn of the late 1980s and early 1990s and they expect this recovery to follow a similar pattern. Toll Brothers Inc, the largest U.S. luxury-home builder had narrowed its losses as new orders doubled.
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posted by Real Estate Investing @ 12:40 AM
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