Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  New home sales fell 8.1% in October
Supporting Image for Blog Post

 
Implications:  The market for new homes remains very sluggish, still apparently suffering from the expiration of the homebuyer tax credit.  The tax credit, which required buyers to sign a contract by the end of April, moved sales forward into the early part of this year.  New home sales, which are counted at contract, increased to a 414,000 annual pace in April, but have averaged only 290,000 in the past six months.  A large inventory of foreclosed homes – many of them built within the past decade – is also depressing new home sales.  It is important to note that, despite the slow pace of sales, inventories are still declining.  Single-family homes are being started at about a 435,000 annual rate.  Of these, only about 255,000 need to be sold, as many are being built on land already owned by the future homeowner.  Given a growing population, the new home sales pace should more than triple over the next several years to roughly 950,000.  On the price front, the median sales price of new homes fell to $194,900 in October, the first time the median sales price has been below $200,000 since 2003.  This price measure is down 9.4% versus a year ago.  In other home price news this morning, the FHFA index, a measure of prices for homes financed by conforming mortgages, fell 0.7% in September and is down 3.4% in the past year.

Click here to view the entire report.
Posted on Wednesday, November 24, 2010 @ 12:05 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.