Thursday, October 29, 2009

New Home Sales Take Dive Despite Recent Stabilization in Housing Sector

Despite news of recent stabilization in the housing sector, the Commerce Department released data yesterday revealing a tumble in new home sales. While analysts had predicted that sales would increase, new home sales fell 3.6 percent in September from the previous month after five consecutive months of rising activity.

Specifically, sales fell 11 percent in the West and 10 percent in the South; however, these decreases were partially offset by a 34 percent jump in activity in the Midwest.

Overall, sales were down 7.8 percent compared with September 2008.

Last week, an industry report brought good news, showing a 9 percent jump in sales of previously owned homes in September. New home sales currently account for approximately 8 percent of the market, down from 15 percent traditionally, according to the National Association of Home Builders.

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