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New Home Sales Fall For The Fourth-Straight Month As Foreclosures and Short Sales Dominate The Market

By
Real Estate Agent with Keller Williams Realty NNE MLS#14683

 

New Home Sales Fall For The Fourth Straight MonthThis shouldn’t be a surprise to anyone. As long as the very well priced Foreclosures (and Short Sales) dominate most major real estate markets new builders won’t have many takers. Here is part of an article from the New York Times.  New home sales fell for the fourth-straight month in August as the bursting of the housing bubble continues to plague the U.S. economy.

Sales fell by 2.3% on a monthly basis to a seasonally adjusted annual rate of 295,000, the Commerce Department said Monday. It was the weakest pace in six months.

Sales in July were revised upward slightly to a rate of 302,000 from a previously reported 298,000.

The results were in line with forecasts. Economists surveyed by Dow Jones Newswires had forecast sales would fall 1.0% to an annual rate of 295,000. Compared with a year earlier, however, new home sales were up 6.1%

Derek Kravits wrote in USA Today  "High unemployment, larger required down payments and tougher lending standards are preventing many people from buying homes. Plunging stocks and a growing fear that the U.S. could tip back into another recession are also keeping people from entering the housing market.Pierre Ellis, an analyst at Decision Economics, said that until wages increase and hiring picks up, home sales will languish.

The "bad news is the evident absence of optimism that sales will pick up to any degree," Ellis said.While new homes represent less than one-fifth of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.  Last year was also the fifth straight year that sales have fallen. It followed five straight years of record highs, when housing was booming.The median sales price of a new home fell nearly 9 percent to $209,100 — the lowest price since last October. That suggests builders are slashing their prices in order to compete with comparably lower-priced previously occupied homes.

Foreclosures and short sales — when lenders accept less for a house than a mortgage is worth — are forcing prices down. Those homes are selling at an average discount of 20%, and they are lowering neighboring home values. That's made many re-sales a bargain compared with new homes, creating an average 30% disparity in prices."

This places the traditional re-sale sellers in an increasingly difficult situation. Caught between bargain priced distressed properties and deeply discounted new homes, many sellers are finding themselves having to significantly reduce  the price of their homes further deteriorating the equity they once had. 

Then if the unimaginable happens:...they lose their job, they become sick or injured, a spouse dies...and now those property owners are now facing the prospect of foreclosure.   

The current U.S. housing market and financial crisis have caused tremendous stress and heartache for families across America. If you or someone you know is among the millions today affected by the prospect of foreclosure, understand that you are not alone

Unfortunately, too many homeowners facing foreclosure proceed without the assistance or advice of real estate professionals. Now more than ever, you need to find an advocate for you and your family's interests, one who is prepared to handle your specific needs.

I am a Real estate professional with the Certified Distressed Property Expert (CDPE) Designation  who has been  trained extensively to understand the options, solutions, and effective methods for dealing with homeowners facing hardships. Don't risk your financial future and the potential sale of your home with an agent who does not have all the solutions.

CDPEs fully understand that saving a home can save a life, which can save a family, which can save a future.

If you, or someone you know has questions about this information, or would like to get started creating a plan, call me today.

The more proactive we are, the better the chance of finding financial freedom and stability.

For a Free Report: Understand your options and learn what you can do next.

Or...I urge you to take a moment and call me…

Alexandra von Bryce--- Direct: 603-387-1674

For more information on Short Sales visit my website at:   NHShortSale911.com   

Alexandra von Bryce, REALTOR®
 CDPE (Certified Distressed Property Expert) CDPE Advanced Member, Certified Short Sale Specialist, Certified Distressed Luxury Property Specialist

 

Direct: 603-387-1674

RE/MAX Properties
169 Daniel Webster Hwy.
Nashua, NH 03060
Direct: (603) 387-1674
Office: (603) 589-8800
Fax: (603) 768-4253

avonbryce@gmail.com

Sources: NYT and USA Today

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