So far buyer's confidence is in the basement, it is sorely lacking thanks to all the trouble in the mortgage banking industry. According to the National Association of Realtors, the sales of existing homes nationwide were down nearly 13% in August with prices for the year predicted to go negative for the first time since the Great Depression!!
Unfortunately, looking at the stats of new home sales it is sadly down 21% coast to coast from a year ago. No wonder the builders are sweetening the pie. The east coast reveals a drop of 14% in the northeast from last year. They are slashing prices, some over $100,000 and others are offering more square footage, individual features and special enhancements to sell the new homes.
According to the National Realtor's Association, the demand is there; consumers are ready, the need for prices to come down is screaming and more mortgage funding is needed.
The sale of newly constructed homes nationwide have plunged to 8.3% last month to a seven year low. Local builders have scrambled to find ingenious way to move existing new homes and building lots. Many have had to take some losses while others are offering great incentives.
This too will pass people!!
