Annual sales of new homes in the United States were only 288,000 in August 2010. Sales were down 29% from a year earlier and were relatively unchanged on a sequential basis. This was the second lowest sales amount for the month of August on record. The median sales price of $204,700 was down 1.2% from August 2009 and the lowest amount since December 2003.
Sales of new homes increased by 54% in the Western portion of the US and they were up 15% in the Northeastern US during August 2010. However, this was offset by a 26% drop in the Midwest and an 11% decline in the South.
Foreclosures and other distressed properties (i.e., short sales), have been putting a damper on pricing and unit sales of new homes. As a result, builders are cutting back on adding new inventory to the market. Although home construction is up 25% from the bottom in April 2009, it is 75% below the peak new construction that took place in January 2006.
The number of unsold new homes in the US was 206,000 in the US as of August 2010. Experts believe this is about 8.6 months worth of supply. Therefore, it seems unlikely that construction will ramp up during the next six to nine months.
What does this mean to those looking to buy a home now?
It is still a buyer's market. Those looking for a new home have many options and can be choosy. However, for the best deals, home buyers should be focused on distressed properties.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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