Wednesday, March 23, 2011
New housing industry all forked up...
As you can see from the facts posted below, new home sales are absolutely abysmal right now, and there are a lot of indications that things may get even worse. The following are 18 reasons why you can stick a fork in the new home construction industry....
#1 New home sales in the United States set a brand new all-time record low in the month of February.
#2 Only 19,000 new homes were sold in the United States during the month of February. The previous record low for new home sales during the month of February was 27,000, which was set last year.
#3 The "months of supply" of new homes in the U.S. rose from 7.4 months in January to 8.9 months in February.
#4 The median price of a new home in the United States declined almost 14 percent to $202,100 in the month of February.
#5 The median price of a new home in the U.S. is now the lowest it has been since December 2003.
#6 As of the end of 2010, new home sales in the United States had declined for five straight years, and they are expected to be lower once again in 2011.
#7 Now home sales in the United States are now down 80% from the peak in July 2005.
#8 New home construction starts in the United States fell 22.5 percent during the month of February. This was the largest decline in 27 years.
#9 In February, the number of new building permits (a measure of future home building activity) declined to the lowest level in more than 50 years. In fact, new building permits were 20 percent lower during February 2011 than they were in February 2010.
#10 There is a major glut of foreclosed homes that still need to be sold off. David Crowe, the chief economist for the National Association of Home Builders, recently told CNN that the constant flow of new foreclosures being put on the market is a huge hindrance to a recovery for new home sales....
Read the rest: