Sales of new homes plunged by a record amount in 2007 while prices posted the weakest showing in 16 years, demonstrating the troubles builders are facing with a huge backlog of unsold homes. Purchases of new homes fell 4.7% just in December 2007 to a 12-year low, the U.S. Commerce Department reported Monday, in a statement (pdf). The number of new homes sold in 2007 sank 26.4% to 774,000, which beat the revious record fall of 23.1% set in 1980. The median price of a new home last year was almost the same level as in 2006, up only 0.2% at $246,900. Many analysts have predicted that prices will continue to fall in 2008 as builders struggle to sell a glut of new properties. Finnaly I know that here on Freshome we focus more on inspiration, but this post might be thoughtful information for US interior designers. - Via - Yahoo
Published by Michael January 30th, 2008 in Tips & Tricks
Tags: Home Sales, New Home, Purchases of new homes, unsold homes
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But what would be the reason? If the prices stay the same (or fall) what is the driver for people rather renting than building?