Lowell Deeds

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

November 7, 2006

Bad News on New Homes

by @ 6:09 pm. Filed under Real Estate

Today’s New York Times contained a story about plunging new home prices. While it focused on the Phoenix, Arizona region, it included some disturbing national statistics:

Across the nation, new-home sales are down by more than 20 percent from their peak last year. Prices fell almost 10 percent in September from a year ago. And that reported drop does not take into account the extras that builders are throwing in free or at steep discounts to lure buyers, which means that effective prices are even lower.

The full article contains a balance of those who believe this is a slight pause in an otherwise robust market and those who think it’s the beginning of a massive and lengthy decline in housing prices. On the later point, the article points out that the construction industry has been a major engine in driving our country’s economy forward over the past five years. When all the lost jobs and reduced spending is layered onto the reduction in borrowing and real estate prices, the threat to the economy is quite real.

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