Jun 1, 2009

New-Home Inventory Falls Further in March | Lexington Luxury Blog

The number of newly built, single-family homes on the market declined for a 23rd consecutive month in March as builders focused on working through the inventory of unsold homes, according to new-home sales data reported by the US Commerce Department.


The inventory shrank to 311,000 units, which is a 10.7-month supply at the current sales pace.

“Builders are doing a great job of thinning the supply of unsold homes and positioning themselves for a slow but steady housing recovery,” noted NAHB Chairman Joe Robson. “The March numbers are a welcome sign that the market is stabilizing as some of the best home buying conditions in a lifetime are drawing consumers off the fence and back into the market.”

The latest government data indicated that new-home sales in March remained virtually on pace with a relatively strong, upwardly revised figure from the previous month. Sales were reported at a seasonally adjusted, annual rate of 356,000 units, which was off just 0.6% from February.

Things are even better in the Dallas Fort Worth market. DFW ranks second in the nation in new home sales and starts.

“In line with NAHB’s forecasts, we continue to see evidence that the new-home sales market is bottoming out as historically low mortgage rates, attractive home prices and incentives like the newly created $8,000 first-time home buyer tax credit spur more interest among consumers,” said NAHB Chief Economist David Crowe.

“That’s particularly true in the West,” he said, “where a 15% gain in March can be attributed in part to California’s implementation of an up-to-$10,000 tax credit for buyers of newly built homes — which, when combined with the federal first-time buyer credit, creates a sizable inducement to purchase.”

Regionally, new-home sales activity was somewhat mixed in March, with the two largest markets posting the best results. The West registered a 15.1% gain, while the South held even with the previous month’s improved sales pace, the Midwest posted a 7.8% drop and the Northeast experienced a 32% decline.

Story Excerpts from: New-Home Inventory Falls Further in March | Lexington Luxury Blog, New-Home Inventory Whittled Down Further in March