Oct
28

Homebuilders Enjoy One-Month Sales Jump

By
Buyers take advantage of reduced prices on newly constructed houses

October 28, 2008

By David Dykes – Greenville News

New home sales bounced higher last month, exceeding forecasts, but housing experts said additional government action is needed to speed the recovery and support home prices.

The Commerce Department reported Monday that sales of new, single-family homes rose 2.7 percent in September to a seasonally adjusted annual rate of 464,000 homes, as many homebuyers seized on builder discounts and rushed to take advantage of expiring down payment assistance programs and other incentives.

Economists had expected new home sales to drop from August levels.

Despite the September increase, sales were still 33 percent below a year ago and off almost 68 percent from the peak in July 2005.

The positive sales turn was tempered by the government’s decision to revise August sales to a decline of 12.6 percent — sharply lower than the initial estimate.

New home sales rose almost 1 percent in the South and jumped by a sharp 23 percent in the West — a region of the country that has seen some of the biggest declines in prices, a development that has spurred sales. Sales fell by about 21 percent in the Northeast and were down 5.8 percent in the Midwest.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:

http://www.greenvilleonline.com/article/20081028/BUSINESS/810280323/1001/NEWS
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