In April, new home sales rose 7.3% to a seasonally adjusted annual rate of 323,000. Experts opine that a healthy real estate market would produce a pace of about 700,000 new-home sales a month.
These days people have a little incentive to buy new homes because they are relatively expensive. Plus, we are seeing more renters in today’s real estate market as opposed to folks purchasing a new home.
Nonetheless, new-home prices are more than 30% higher than the median price of re-sales. This is twice the normal markup.
Potential home-buyers are favoring older, discounted homes because that is where the deals are. Especially in light of the large inventory of foreclosed properties.
Certainly it’s a positive sign that we are seeing a rise in new home sales. However, the fact remains we are still in a depressed housing market. As proof of this, new home builders are keeping the supply of new homes at artificially lows. The high unemployment rate, tight credit and the fear that home prices will fall even further is also preventing a full-fledged recovery.
If you’re in the market to buy a new home or condo, now is a great time to do so. With sale prices continuing to drop, potential buyers need to take advantage of the current market conditions.
Today’s current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. There are many factors contributing to Florida’s nation leading delinquency rates. They include a weak job market, weak economic recovery, and a major drop in home prices. Consequently, Florida’s housing market remains unsettled in large part due to the continued foreclosure crises.
Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it.