New Home Sales May 2009
Sales of new residential property fell by 0.6 percent in May, according to the US Department of Commerce. That number is down from the number of home sales in April and down a staggering 33 percent from May 2008. Oof.
Despite the down numbers, most people surveyed believe that the housing market is on the rebound or at least stabilizing. Commonly held belief is that the market bottomed out in January 2009 and that it will not again hit the steep credenzas the nation saw in 2008.
Considering we’re talking about six tenths of a percent, I would suppose that the “experts” may be right here in stating that there’s no cause for alarm. The seasonally adjusted rate of 342,000 homes with a median price of $221,600 in May are not really appalling numbers and certainly allow for a bit of optimism. Let’s just hope all these houses aren’t being bought up by the same geniuses who were giving absurdly low initial interest rates and payments only to jack the price through the roof two years later. Let’s also hope it’s not the same geniuses who took on those mortgages taking on these new ones.
June 24, 2009
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