The decline followed a 15.8 percent plunge in January, the biggest one-month decline in 13 years.
The weakness in sales was accompanied by a drop in prices with the median price of a new home falling to $250,000 in February, down 0.3 percent from a year ago.
We are starting to feel this in our local markets as builders complete what was permited and started during the spring of 2006. It was not until the fall that building permits feel to lows so the conveyor belt of inventory continue to run and dump into an already overflowing market. The great news for buyers is that builders find themselves with homes they thought were already sold and are entertaining offers and creative deals. Make sure you are represented you visit a new home sales center. Remember, the onsite people work for the developer/builder and they will focus on what they get paid for, getting the developers inventory sold.
A buyers agent will be able to compare new homes to resale homes and educate you on the market for both.This can save you time and most importantly your money. The best part is the buyers agency services are free to the buyer.
Michael Polly - Vice President Denny Grimes and Company
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