NEW HOME SALES
This week the numbers were released on new home sales for the month of April 2007. According to the data new home sales went up an unprecidented 16.2 %. Why is this so exciting and historically important. Put it this way, for the month of March New Home Sales were only up 4.1 %. There hasn't been a spike of this proportion in over 12 years.
NEW HOME PERMITS:
On the flip side Permits to build new homes have depleted considerably. This means that new home builders are not rushing out to build new homes and trying to level off the inventories in which they already have.
WHAT DOES THIS ALL MEAN?
This shows us that the housing market is just about done correcting itself. Housing prices are beginning to stabilize. When you factor in the latest interest rates it truly is a great time to buy a new home.