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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

January 25, 2009

Another Year of Stay-cations?

Last year, the cost of fuel caused many people to just stay home for vacation. It simply cost too much to travel, and that cost was added on to everything from groceries to hardware. That pretty much broke the bank for millions of people who suffered through stagnant pay, rapidly rising costs, and a loss of equity in their homes.

Now, we’re supposedly in a recession, but it could be a depression, or even some new breed of economic malady. And, everyone is cutting back seriously on their spending. This year, despite the dramatic rollback on fuel costs, we’re probably looking at another summer of “stay-cations”, as the vast majority of consumers remain tight-fisted with their hard-earned money. A lot of vacationers will be trading down from their normal travel, and driving to local destination areas. And many others will be staying–at home.

Those who already own a vacation home will most certainly be taking advantage of that. But it looks like the “stay-cation” may be here to stay for awhile. This year’s cause will be the economy. But, even when the economy turns around, you can expect the price of fuel to surge right back up again when demand increases.

That’s why it’s imperative to start seeking out alternative energy sources immediately. They’ve been here for years. In fact, the first automobiles were electric. (Here’s an amusing history of early electric cars.) Electric trains and buses preceded them. But combustion engines won out due to cheaper sources of fuel, and popularity. People associated the noise with power, and electric cars faded away.

It’s time we got over the notion that noise equals power and get back to refining electric vehicles. It has long been known that there’s enough wind in the midwest to run just about everything in this country, including cars. There’s enough solar energy in the deserts to do the same things. What’s missing is a massive grid to carry all the electricity safely, and efficiently. Sort of like the highway system that we made for automobiles, or the railroad network. Right now, our energy sources are mostly from imported sources. The quicker we gain our energy independence, the more likely we’ll be able to go back to our much needed vacations again.


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