Sales of New Homes Up 4.7% in February! A Sign of Rebirth?

By
Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

Greetings on a chilly Chicago night!

Across the U.S., it appears that sales of new homes is on the rise!  In February, sales of new homes rose 4.7% versus January, to an annualized rate of 337,000 units.

Sounds encouraging, yes?  Well, not completely!

As summarized in Kelly Evans' article in today's Wall Street Journal, the median sales price for a new home was $200,900 last month, compared to $251,000 in February, 2008.  Last month, nationwide, the median price of a home resale was $165,400. 

Indeed, many builders are scaling back features and amenities on their new homes, in an attempt to make them compete more strongly with lower-priced existing inventory - much of which is being sold at fire-sale prices in short sale or foreclosure.

There is renewed buyer activity on newly-built homes, as the $8,000 First Time Homebuyer Credit, coupled with very low interest rates, have lured some buyers to write offers to purchase.  But the number of new homes on the market is at a seven-year-low 330,000 units for sale.  Most builders are building fewer true new homes, instead trying to unload unsold inventory piled up for many months of sluggish interest and activity.

A signal for a housing market turnaround?  An encouraging sign, perhaps - but not necessarily the absolute signal!

Please see our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

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Topic:
ActiveRain Community
Location:
Illinois Cook County Chicago
Groups:
Floyd Wickman
Keller Williams 'Rainers
Realtors®
FREEDOM Office: Professionals Working from Home
Windy City Real Estate
Tags:
chicago real estate news alert new home sales increase in february

Comments 6 New Comment

Rainmaker
652,246
Bob & Carolin Benjamin
East Phoenix Arizona Homes
Benjamin Realty LLC

This is all good news -- may we keep it up. All the best.

March 25, 2009 10:27 PM
Rainmaker
337,595
Pat O'Reilly
RE/MAX..214-289-6176 Irving and all of Dallas Fort Worth

I am claiming this is the rebirth!!!

March 25, 2009 10:40 PM
Rainmaker
70,707
Todd Kevitch
BPO Realty - Boynton Beach Real Estate and more

Builders have become more realistic and have finally lowered their prices

March 25, 2009 10:42 PM
Rainmaker
1,519,720
Dorie Dillard
Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors

Let some good news float around for awhile Dan.The consumers need to hear positive notes..the negtive have beaten energy and life out of them for too long!

March 26, 2009 06:54 AM
Ambassador
780,565
Charlie Ragonesi
Homes - Big Canoe, Jasper, North Georgia Pros
AllMountainRealty.com

I think it is too early to call it a trend. BUT it is definetely good news. GFingers crossed we do not have another thing to be named later explode on us in the economy

March 26, 2009 07:06 AM
Rainmaker
362,833

Dean Moss

Dean's Team Chicago IL Real Estate Team
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