From Bloomberg News;
Feb. 26 (Bloomberg) -- Sales of new homes in the U.S. plunged in January to a record low as soaring unemployment and mounting foreclosures drove buyers away.
Purchases dropped 10 percent to an annual pace of 309,000, the lowest level since data began in 1963, the Commerce Department said today in Washington. The median price decreased 13.5 percent, the most in almost four decades.
Even as they slash prices, builders are likely to keep losing customers as foreclosures drive down the value of existing homes further, making them comparatively more affordable. The Obama administration is making a priority of keeping more Americans in their homes to stem the collapse in property values at the root of the credit crisis
Wow. The new home sales number follows Tuesday's Case-Shiller Index dive of 18.5% and yesterday's existing home sales disaster. The national average of inventory of NEW homes is now 13.3 months. As we reported yesterday, our friend in Oregon told us total inventory in the great northwest is TWENTY MONTHS! Additionally, remember that many of the major banks, as well as Fannie and Freddie have imposed foreclosure moratoriums. The overhang continues to sufficate.
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Posted by: FuemiFeatawef | March 04, 2009 at 01:59 PM