Some Negatives Abound for Home Sales

 

It also needs to be emphasized that the good news that recently has been greeting the housing industry needs to be put within the context of the long pummeling that has brought activity to dramatic lows.
Photo Credit: Helen Adams Realty

Despite their recent rebound, single-family new home sales are down 13.4% from a year ago. At a seasonally adjusted annual rate of 433,000 in July, they were only about 40% of what would be considered a reasonable sales pace in normal times.

What is most troubling is that the median number of months for a sale after the completion of a new home rose to 12.4 months in July, a record high for this measure since the Census Bureau began tracking it in 1975. As the housing market continues to rebound, the length of sale will eventually shorten.