New Home Sales Tumble -- Again
The worst month in 2010 was August, when new home sales plummeted to 275,000 units in response to the end of the up-to-$8,000 homebuyer tax . The best month of sales in 2010 was April with 414,000 units, when the tax officially came to an end.
The poor sales of new homes were coupled by a considerable drop in the median home price, which fell nearly 13.9 percent to $194,900 from $226,300 the previous month.
The steepest decline in month-over-month sales occurred in the West and Midwest, where new home sales shrank 23.9 percent and 20.4 percent, respectively. Only the South posted moderate sales growth, up 3.1 from September.
Even as mortgage rates hover near record lows, tighter credit restrictions and a lack of home equity continue to prevent many interested homebuyers from making the move. But for those that can qualify for today's low mortgage rates, opportunities abound in nearly every housing market.
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