New Home Sales Take a Tumble

[Apr 22, 2007.]

 

The U.S. housing market may be suffering a slowdown, judging from the latest statistics from the U.S. Census Bureau and the Department of Housing and Urban Development.

The figures show that sales of new one-family houses in February were 3.9 percent below the revised January rate and 18.3 percent below the February, 2006 estimate.

Sales of new houses totaled 848,000 in February, 2007-far below the February 2006 estimate of 1,038,000.

The report also indicates that the seasonally-adjusted estimate of new homes for sale at the tail-end of February was more than a half-million. At the current sales rate, this represents a supply of 8.1 months.

Just how expensive are the new homes going up for sale? According to government figures, the median sales price of new homes in February was $250,000, while the average new home sales price topped out at $331,000.

Meanwhile, the NAACP and the National Association of Home Builders recently held a roundtable discussion to determine how to make housing more affordable for minority populations.

The group discussed such practices as establishing deterrents to predatory lending, greater consumer education campaigns, and a revamped Federal Housing Administration.

"The roundtable discussion was a critical first step in determining how we move the affordable housing issue from a policy discussion at the national level to a movement that makes a real difference in the lives of families across the nation," said Dennis Hayes, the Interim President and CEO of the NAACP.

Hayes added, "We view this issue from a broader context, and seek to determine the larger social costs of current development patterns. We don't want to encourage policies that promote economic disassociation."

Groups taking part in the roundtable discussion included the Mortgage Bankers Association of America, the National Association of Realtors, the National Housing Conference, the National Association of Housing and Redevelopment Officials, Local Initiatives Support Corporation, Independent Community Bankers of America, and Enterprise Community Partners.

Julie-Ann Amos
22nd April 2007

More Information:

• How To Tell When It Is A Good Time To Refinance
  With the economy fluctuating as much as it is today, every now and them it produces a time when it is a good idea to refinance your mortgage. You have heard of others making that change, and may have heard that some got a much better deal. Mortgages are different though, and so are people's circumstances.