In a healthly market approximately 750,00 new homes would be sold nationwide. At the current annualized rate new home sales for 2011 are predicted to top out at just 307,000 units. Economists are already claiming that 2011 will be the worst year on record for new single family homes, and the demand for new housing has been descibed as “miniscule”.
Only 3 states have not set record lows for new housing permits, and the inventory of new homes for sale is at a 6.3 month supply – approximately 163,000. Average new home prices in October were $243,000 – the lowest since August 2003.
Nationally home prices are at levels last seen in 2003. The Phoenix metropolitan area is almost back to January 200 price levels, along with other hard hit areass such as Atlanta and Las Vegas area where prices have slipped even further.
Nationally sales of existing single family homes may avoid a record low due to the fact that a third of existing homes are being sold at “distressed” prices. Distressed sales contribute to housing sale units but have a negative effect on home prices overall.
Third quarter data puts the number of homeowners who are “underwater” at 22.1%, making 10.7 million homes vunerable to foreclosure.
Wallingford Real Estate – Wallingford, PA 19086
