Sales of new homes dropped in February to the lowest level seen in nearly seven years, while inventories of unsold homes rose to a 16-year high, suggesting that the nation's housing market was softening heading into the vital spring buying season.
Sales of newly constructed single-family houses slowed again in February, falling 3.9% to a seasonally adjusted annual rate of 848,000, the lowest level since June 2000, the Commerce Department reported Monday. Sales were down 18.3% compared with February 2006.
"Housing still has some distance to fall," wrote Phillip Neuhart, an economist for Wachovia, in a research note.
Inventories of unsold homes rose 1.5% to 546,000, representing an 8.1-month supply, the largest inventory in relation to sales since January 1991, at the tail end of a recession. The inventory is up 27% in the past 12 months.
Inventories are probably understated, however, because they don't include homes thrown back on the market due to buyer cancellations.[tags]housing market,new home sales,real estate bubble[/tags] San Diego real estate agent
In light of this news, do you really think our recent uptick in local San Diego real estate is anything more than a short term blimp? San Diego DUI defense lawyers
It really looks like 2007 will be a VERY bad year for real estate investors. bail bonds San Diego
I think a few more months and we may be at a good time to buy San Diego real estate!
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The newspapers are really not telling the whole real estate foreclosure story.
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