Wednesday, May 18, 2011

NEW HOME SALES PLUNGE IN APRIL

As they say every year at the beach..."just when you thought it was safe!", it isn't.  Homebuilders and especially the smaller modular home builder will be facing some tough months ahead.  The homes they've already contracted to build will start happening very soon but the rush of new houses that spring usually brings will not be such an impact this year.

New home sales are at the lowest levels since 2009 which was a low water mark.
 

Nearly two years after the recession ended, the pace of construction is inching along at less than half the level considered healthy. Single-family home building, the bulk of the market, has dropped 11 percent in that time.

Builders are struggling to compete with waves of foreclosures that have forced down prices for previously occupied homes. The weakness is weighing on the economy: Though new homes represent a small portion of overall sales, they have an outsized effect on jobs. 

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