Sales of New U.S. Homes Fall for a Third Month on Slump in West

[Purveyor]

Source: Bloomberg

Purchases of new homes in the U.S. unexpectedly declined in March for a third month, reflecting the weakest pace of demand in the West since July 2014.

Total sales decreased 1.5 percent to a 511,000 annualized pace, a Commerce Department report showed Monday. The median forecast in a Bloomberg survey was for a gain to 520,000. In western states, demand slumped 23.6 percent.

Purchases rose in two regions last month, indicating uneven demand at the start of the busiest time of the year for builders and real-estate agents. While new construction has been showing limited upside, cheap borrowing costs and solid hiring will help ensure residential real estate continues to expand.

“The overall picture is still pretty good,” said Tom Simons, a money-market economist at Jefferies LLC in New York. The monthly swings in the new-house segment, a very small share of the market, “make it very hard” to get a definitive read from the headline numbers, he said. “As the labor market improves, people will be more willing to take risks and invest in housing.”



more...

http://www.bloomberg.com/news/articles/2016-04-25/sales-of-new-u-s-homes-fall-for-a-third-month-on-slump-in-west

Read more: http://www.bloomberg.com/news/articles/2016-04-25/sales-of-new-u-s-homes-fall-for-a-third-month-on-slump-in-west

[C Moon]

1. Oh joy. :/

[whatthehey]

7. Yeah that trend is truly horrible ain't it?

[sense]

2. Unexpectedly my ass.

[IthinkThereforeIAM]

6. They do not build as many new homes in blizzards...

... as they do when it is warm and sunny. Every year at this time they tell of a, "three month decline".

[mnhtnbb]

3. Resales are strong in my town

In fact, the market has turned "hot" according to a well known realtor here in Chapel Hill that we've used.

It took us 6 months to get an offer on our little 1850 sq ft house--updated--3 BR 2 BA--walking distance to UNC campus
two years ago. The neighbor across the street with same size house and also 3 BR 2 BA NOT updated (they've
lived in the house for more than 30 years) had it under contract within a week of putting it on the market earlier this month.
The tiny house on the corner--<1000 sq ft--also is under contract in less than 2 weeks on the market.

[FLPanhandle]

4. Prices are way up in our area

Looks like prices have caught up with demand.

[Mosby]

5. the north central area in Phoenix is doing really well

Not just residential housing but also commercial.

[reddread]

8. will the light from a decent economy ever shine on Free Market America?