With lower borrowing costs and rising demand new home sales rose 6.2% to an annual pace of $430,000 the highest level since September 2008. The median sales price fell 0.5% and the number of unsold homes reached a four decade low. Some analysts suggest that these numbers were helped with the rush to take advantage of the first-time buyers tax credit that was scheduled to end 11-30-09 but has been extended through the Spring of next year.
The median price of a new home decreased to $212,000 from $213,000 a year earlier. Sales of new homes were up 5.1% from October 2008 the first year over year gain since November 2005.
Inventories dropped as well. The number of homes for sale fell to a seasonally adjusted 239,000 the fewest since May 1971. The supply of homes at the current sales rate decreased to 6.7 months worth, the lowest level since December 2006.
Posted by Randy Ratchford/Randy is a partner/mortgage planner with Horizon Financial. Randy can be reached @877-627-9211 ext.107 or email Rratchford@HorizonFinancial.org
