New home sales for Decemeber…Doom and Gloom

January 29, 2009
Matt Isleib

 

The homebuilding industry continued its descent lower in December slowing to the slowest pace since 1963. This is the lowest pace on record. New home sales fell 14.7 percent in December to a seasonally adjusted rate of 331,000 the Commerce Department said Thursday. New home prices fell more than 9 percent from a year ago.

 

The 2008 annual figures are not much better. For the entire year of 2008 new home sales were down 38 percent from 2007. In 2008 builders sold 482,000 new homes chalking up the worst year since 1982 where 412,000 homes were sold.

 

Although for home builders the outlook is not very good there is one bright spot that we can look at to possibly get the ball rolling in our favor. Sales of existing homes increased in December! December outpaced November by 6.5 percent according to the National Association of Realtors. It is a sign that low interest rates and some real bargains in the market are starting to stir some buying. It is a very good sign. As I have said before now is the time to buy. This may not be dead bottom but buying here is without a doubt a win/win situation in the long run.

 

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