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New home sales: 'Really good news'

NEW YORK (CNNMoney.com) -- Sales of newly constructed single-family homes spiked 11% in June to an annualized rate of 384,000 homes, according to a report released Monday.

The gain over May was much greater than expected. A consensus of housing industry analysts had forecast seasonally adjusted sales of 352,000, according to Breifing.com.

However, sales are still 21% below the levels of a year ago, when new homes sold in June at an annualized rate of 488,000, according to the report released by the U.S. Department of Housing and Urban Development. Four years ago, during the height of the housing boom, the sales rate for June was 1,374,000, nearly three-and-a-half times higher than last month.

Still, the report was very positive, according to Peter Morici, an economics professor at the University of Maryland who had forecast June sales to be at the 350,000 level. "That is really good news. Considering what's going on in existing home sales, with all the foreclosure activity sending down home prices, for new homes to jump like that is a good indicator that the economy is bottoming out."
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Vacation Home Blog and News

May 17, 2009

Time to Buy a Vacation Home?

Filed under: Vacation Home Market — Jim Marks @ 11:05 am

Okay. This has been an ongoing question for two years, and the verdict is still out. The economy is in severe flux, and most of us haven’t experienced these types of ups and downs combined with no clear indicators of the future. Right now, the market is rebounding or is at the top of a bear rally. Who knows? But, with nearly 2,000 auto dealerships closing and GM about to close down for the summer, that could bring the unemployment figures well beyond the expected 10% by year’s end. In turn, many more foreclosures could be in the pipeline.

On the other hand, the stimulus package could be just starting to kick in. People who have steady employment and are unlikely to be laid off may soon need a new car, or may decide it’s the right time to buy a home. So, take your best guess in this new poll!

WHEN'S THE BEST TIME TO BUY A VACATION HOME?

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