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Friday, December 2, 2011

New-Home Sales on the Way Up!

New-Home Sales on the Way Up

New home sales rose in September after four straight months of decline, hitting a six-month low in August. According to the Commerce Department, the sale of new homes in September rose by 5.7% to a seasonally adjusted annual rate of 313,000 homes. Sales of new homes rose by 11.2% in the South and 9.7% in the West. However, they fell by 4.2% in the Northeast and 12.2% in the Midwest. There were 163,000 new homes for sale in September, which is a record low.

The driving force behind the rise in the sale of new homes is the decrease in price. The median price for a house fell 3.1% to $204,000. Builders have decreased prices because there is not as much demand for new homes. The median price for a house was the lowest since October 2010. This decrease in new home prices is great news for those looking to buy a new home. But it is bad news for builders, and a sign that the economy is hurting.

New home builders are trying to keep up by selling older homes. Foreclosures and short sales (when lenders negotiate and accept less than what a house is worth) are selling at an average discount of 20%. These types of homes also lower the value of other homes in the neighborhood. This means that it is easier to sell an older home than a new one, and there is a 30% disparity in prices. New home projects in September started at the fastest pace in seventeen months.

New-Home Sales on the Way Up!
Los Angeles, Platinum Triangle, Beverly Hills, Real Estate, 90210, Bel Air, Holmby Hills, Sunset Strip, Hollywood Hills, Luxury Estates, Mansions, Celebrity Homes, Homes For Sale, Listings, Realtor, Real Estate For sale, Luxury Homes, Los Angeles Realtor, Bel Air Real Estate, Christophe Choo, http://www.ChristopheChoo.com

Posted on: Beverly Hills Real Estate-Beverly Hills Homes For Sale

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