Lowell Deeds

The latest on real estate recordings and new technology from the Middlesex North Registry of Deeds in Lowell

February 28, 2006

January New Home Sales

by @ 9:38 am. Filed under Real Estate

The US Commerce Department is reporting that sales of “new construction homes” in January fell. Analysts point to this decline as a real indicator that the Nation’s real estate market is softening. The Commerce Department reported that new home sales dropped 5% last month, marking the slowest pace in a year. Ironically, the country’s mild winter helped increase the number of new construction starts… but January’s end saw 528,000 unsold new homes…a nine year high. Of course, speculation is everywhere that a glut of new homes will drive prices down…but don’t hold your breathe…that wasn’t the case in January…once again despite a significant decline in sales median prices in the country rose. The median price for a new home climbed to $238,100, 4% higher than December. According to a New York Times article the increase in prices reflects “the efforts by home builders to lure buyers by offering to pay closing costs and to upgrade appliances and other fixtures, incentives that may increase their costs but that does not show up as a drop in the final price paid by the buyers”. Let’s not forget, new home sales make up only 15% of national transactions. The National Association of Realtors is expected to release January sales data today and economists expect sales of existing homes to be flat also. Stay tuned …we’ll have those reports for you also.

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