Wednesday, March 3, 2010

New Jersey New Home Sales Affected by Jobs

The U.S. Commerce Department's housing report released last week announced that sales of newly built, single-family homes declined 11.2% in January to a seasonally adjusted annual rate of 309,000 units, the slowest pace on record.

"This disappointing report highlights just how fragile the economic and housing recovery is right now, and the uncertainties that continue to weigh on consumers, particularly with regard to concerns about job security," said Bob Jones, chairman of the National Association of Home Builders (NAHB).  "Even with today's exceptionally favorable home buying conditions, many consumers simply weren't confident enough to go forward with a new-home purchase in the beginning of this year."

"While the overall economic picture has brightened somewhat, these numbers indicate that the road to a housing and economic recovery remains very uncertain. Many Americans have yet to see much evidence of improvement first-hand, and are therefore reluctant to consider a home purchase," noted NAHB Chief Economist David Crowe. "Meanwhile, competition from below-market-priced foreclosed and short-sale homes poses an additional challenge to the new-homes market right now. Although we continue to expect a boost in overall sales activity prior to the expiration of the $8,000 and $6,500 home buyer tax credits at the end of April, unseasonably poor weather across much of the country may delay the full impact of those incentives until closer to the deadline."

According to the report, the Northeast posted a 35.1% decline in new home sales in January, and certainly the weather here was a big factor.  We expect a surge in interest as soon as the weather improves, because the clock is ticking on that tax credit - you need to be in contract by April 30, for 1st time or move-up buyers.

Call or email about new home construction opportunities in Mercer County, and visit Dogwood Meadows to see what a development under construction offers you.

Joe Giancarli, Sales Associate

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