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24 May 2011

New-home sales up, but pace remains sluggish

WASHINGTON (AP) – May 24, 2011 – More Americans bought new homes for a second straight month in April, a hopeful sign. Still, sales remain far below the pace that would represent a healthy housing market.

New-home sales rose 7.3 percent last month to a seasonally adjusted annual rate of 323,000 homes, the Commerce Department said Tuesday. A normal housing market would mean a pace of about 700,000 new-home sales a month.

People have little incentive to buy new homes, in part because they’re comparatively expensive. The median price of a new home rose more than 2 percent from March to $217,900. New-home prices are more than 30 percent higher the median price of re-sales – twice the normal markup.

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More at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=260342

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