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New home sales | Sales up Prices Down
Sales pace missed forecast to show increase as builders cut prices in effort to cut inventories.

Some price reductions in the real estate market helped give new home sales an lift in July, according to a recently released government report. This was good news about the state of the down housing market because forecasters had expected a loss in this sector

.New home sales rose 2.8 percent to an annual rate of 870,000 from a revised 846,000 rate in June, the Commerce Department reported. Most well respected economists had been looking for sales to fall to a rate of about 825,000, a level that would have been close to a seven-year low.

Home builders have been worried about a surplus in the housing market so they reacted by cutting prices of new homes. It appears this move helped lower the average new home sold price to $300,000 down more then 3.4 percent from just one year ago.Recent sales prices have been hurt by a large supply of homes on the market but the latest report started to show some progress chipping away at the surplus.

The government estimated there was over a seven month supply of homes in June, but that slipped to a six month supply in the latest reports. The average time that a completed home sat on the market moved higher in the latest report, though, to 6.1 months from 5.9 in June.The report’s price readings probably don’t capture all the downward pressure on prices.

In the latest survey by the National Association of Home Builders, about three-quarters of builders reported offering extras such as paying for closing costs or adding features for free to boost demand.

Tom Reed and Bill Brown are local authors and real estate experts of Legacy Real Estate Brokers Inc. in Denver Colorado. You can visit their website at www.discovercoloradorealestate.com.

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4 Responses to “New Home Sales | Sales up prices down”

1. New Home Sales | Sales up prices down · Real-Estate.ExplainedOnline.Net Says:
   June 16th, 2008 at 9:52 pm

   […] Original post by Welcome to the Legacy Real Estate Blog […]

2. New Home Sales | Sales up prices down · Real-Estate101.ExplainedOnline.Net Says:
   June 16th, 2008 at 10:03 pm

   […] Original post by Welcome to the Legacy Real Estate Blog […]

3. New Home Sales | Sales up prices down · Invest-In-Real-Estate.ExplainedOnline.Net Says:
   June 16th, 2008 at 10:05 pm

   […] Original post by Welcome to the Legacy Real Estate Blog […]

4. Import from China Says:
   July 25th, 2008 at 3:46 pm

   Nice post, you got some good points there - thank you.

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