New-Home Sales Drop

New-Home Sales

The Commerce Department reported today new-home sales fell 11.5% in September to the lowest level in the last 10 months. to compound this, bad news, the report also stated thatthe August new home sales were revised down by 22,000.

Even with this drop in September new home sales, the year-over-year new home sales pace was actually up by 2%!a number of housing market insiders attribute the September drop in new home sales to the increasing home prices. In many markets home prices are far exceeding the ability for the average new home buyer to qualify for conventional mortgage. Read more