February 2010 new home sales data
While existing-home sales are up 7.0% from February 2009, the U.S. Census Bureau reports today that sales of new single-family homes dropped 2.2% from January 2010 and a drastic 13.0% from February 2009.
The median sales price of new homes in February was $220,500 with a 9.2 month supply.
In February, we reported that housing starts were up and permits were down, but with a 9.2 month supply and new home sales at a startling low, home builders may be in for a rough spring.
Will the tax credit save the industry next quarter or will we see more small builders closing up shop?
Regardless, our suspicion is that if the new home industry is struggling this much, that “we can’t help you” attitude of last year might have turned into a rolling out of the red carpet- maybe it’s time to grab your buyers and go shopping?!?
Benn Rosales
March 24, 2010 at 12:02 pm
This is fantastic news for investors, buyers, and Realtors all at the same time- Builders are desperate – it’s time to buy, right now.
Greg Cooper
March 24, 2010 at 2:42 pm
Mark it down….new home sales will get worse still. Why would you build when every consumer knows you can buy distressed resale at 60 cents on the dollar? Builders better have VERY deep pockets for the forseeable future if they’re going to survive. Actually the new home sales numbers don’t concern me nearly as much as the resale dip this week. Those going down in the midst of our ongoing stimulus are VERY uncomfortable in our so called ‘recovery.’
Benn Rosales
March 24, 2010 at 3:57 pm
Greg, buck up cowboy, the grass does get green around this time of year.
Tonia Parker
March 25, 2010 at 6:37 pm
As a New Home Consultant since 1988 it is a great time to purchase a new home! Why buy a distressed foreclosure or short sale home when builders like Lennar are offering great incentives and a home that is “new” with all the warranties! In our Sacramento market, Lennar went “solar” almost two years ago and all of our Sacramento area Lennar homes come with a solar electric system–customer see monthly utility savings and help the environment all at the same time! Pricing is extremely competitve with what is being offered in the resale market. We have seen an increase in agents bringing their “frustrated” tired-of-waiting-on-the-lender short sale offer clients out to see our ready for move-in homes! We have made lots of agents and their clients happy with the home purchase and incentives.