In December, sales of new homes did not improve. According to the Census Department, only 342,000 homes, seasonally adjusted, were sold last month. The drop in new home sales is not good news. While the home sales rate only fell by 7.6% in December, when compared to the new home sales number for November, signs of a recovering new sales housing market do not appear to be imminent.
By now, some economist may be frustrated with this sector of the housing market? It is possible that December’s new home sales decline is a result of individuals rushing to buy new homes in previous months, prior to the original due date for the first time homebuyers tax credit? In the upcoming months, economists will be able to evaluate the validity of the previous question.
Furthermore, economists will have the opportunity to investigate others reasons for the decline in new home sales. People may be more interested in purchasing an older home with a lower price tag. In some instances, these older homes are in depressed neighborhoods because of numerous foreclosures in the neighborhood or in the area.
On the other hand, people could be waiting for tax checks or salary increases before committing to purchase a new home. As we move forward in 2010, economist will continue to be hopeful that the economy improves, which may help to boost new homes sales.
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