Sales of newly built homes fell in July to the lowest level in six months, as the nation's housing market continues to struggle. Newly constructed single-family homes sold at a seasonally adjusted annual rate of 298,000, putting the industry on a pace to post the lowest annual sales since the Commerce Department began keeping data in 1963. The market for new homes has been weak since the collapse... [more]
Sales of newly built homes fell in July to the lowest level in six months, as the nation's housing market continues to struggle.
Newly constructed single-family homes sold at a seasonally adjusted annual rate of 298,000, putting the industry on a pace to post the lowest annual sales since the Commerce Department began keeping data in 1963.
The market for new homes has been weak since the collapse of the housing market five years ago. Sales got a boost from special tax credits for first-time buyers through the first half of last year, but fell again once those credits expired. New homes have faced stiff competition from foreclosures, while buyers have been scarce because of tight credit and a poor job market.
The seasonally adjusted estimate of new houses for sale at the end of July was 165,000, representing just over six months worth of inventory at the current sales rate. Economists typically see a six-month supply as healthy. But with sales so weak, it's a sign that builders are reluctant to build and are keeping inventory low.
http://articles.latimes.com/2011/aug/24/business/la-fi-home-sales-20110824[less]
