November 29, 2005
The “Rogue” Sales Report
According to the Commerce Department, US new homes (as opposed to existing homes) sold at an annual rate of 1.42 million in October, up from a revised 1.26 million pace in September; a 13 percent increase and the biggest jump since April 1993 (and sales in the West showed more than a 40 percent jump).
At the same time, “the average price fell from September, suggesting that new homes at the upper end of the market had shown more softness than middle- and lower-priced homes.” A point that led economist Robert Brusca to comment, "All other housing signs are in the other direction. For now consider this a reversible, rogue report."
We offer two words to consider: Builder Incentives (i.e. discounting).
First Published: November 29, 2005 9:19 AM