Wednesday, April 25, 2012: According to the newly released figures from the HUD and the US Commerce Department,
sales of newly built, single-family homes declined 7.1 percent to a seasonally adjusted annual rate of 328,000 units in March from an upwardly revised, robust pace of 353,000 units in February.
Regionally, new-home sales activity was mixed in March, with the Northeast and South posting gains of 7.7 percent and 3.1 percent, respectively, while the Midwest and West registered respective 20 percent and 27 percent declines.
The inventory of new homes for sale continued to shrink in March to a new record low of just 144,000 units, which is a 5.3-month supply at the current sales pace.
"Some new-home sales that would have happened this March were likely pulled forward as a result of exceedingly good weather conditions across much of the country in February, when we recorded the quickest sales pace since the end of the home buyer tax credit," noted Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. He added, "The bottom line is that builders in many markets are reporting more interest among prospective buyers, with the main sticking points for sales right now being access to credit for builders and buyers, and problems with obtaining accurate appraisals."
Wolf Colony
