New Home Sales Up 14%, Could This Be Cannibalizing Existing Home Sales?

Mortgage and Lending with Primary Residential Mortgage Inc. NMLS 3094 NMLS # 260747

This morning a new report indicated that new home sales are up 14%. The key word there is "new". Could the new home sales be taking away the home buyer from the existing home sales? In the market area's i service which is #Ukiah and #Willits in #Mendocino county, #CA. this summers sales seem to be "lackluster"!  There are not any new home subdivisions  in my marketing areas, but, in other places where there are, could be a reason for a slow down in existing home sales?

In many parts of the county there has been reports of a slowing of home purchase activity. Now I know some of this is because of  lack of inventory and some of it is seasonal (it's summer, time to play) but if there is a pick up in new home building, and there is, we may find that our problems with inventory are thing of the past.

This would be good for the buyer, not necessarily good for realtors and sellers of existing homes, but getting away from a buyers market to a sellers market soon means a balanced market. Perhaps the new home's for sale will get us back to normal!

Posted by

Rick Costa





NMLS # 260747 Representing Bay Equity Home Loans NMLS # 76988

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