Friday, August 27, 2010

July Sales Decline Affects New Jersey Builders

The U.S. Commerce Department reported of a 12.4% decline of new home sales for July.  With newly built single-family home sales now at annual rate of 276,000 units that month, this represents the lowest sales rate for new homes on record.  Bob Jones, chairman of the National Association of Home Builders (NAHB) commented, "Potential home buyers have become very hesitant due to uncertainty about the economy and job market, and are putting off the decision to buy until they feel more confident."

"The slow pace of economic recovery and worries about job security are weighing heavily on the minds of potential home buyers right now," agreed NAHB Chief Economist David Crowe. "As a result, the housing market is clearly in a holding pattern. That said, NAHB does not project that a double-dip recession is in the cards, and we are looking for employment gains later this year to help bolster sales activity moving forward."

Sales of new homes fell across every region in July, with a 13.9% decline reported in the Northeast.  The latest figures indicated that builders are keeping a tight rein on the inventory of new homes for sale. That inventory remained unchanged at 210,000 units in July. However, due to the slower pace of sales activity, the month's supply of homes rose to 9.1 from 8.0 in the previous month.

Call or email me with your questions on new homes in New Jersey, and new home developments in Mercer County and surrounding areas.  I can help you find that New Jersey new home and be in before the snow falls.

Joe Giancarli, SA
Real Estate Advisor


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