New Home Sales Up But Still at Record Low Levels

Watching this real estate market closely is an obsession of mine. Almost daily there are stories written and statistics published that taken all together, begin to show a picture.

And studying the micro market of Santa Rosa, more specifically, home sales in Bennett Valley - the picture is clear. Good home priced at 2001-2002 levels will sell. All others sit on the market for 120 days or longer as the home inventories continue to grow.

clipped from news.yahoo.com The Commerce Department reported Tuesday that new-home sales rose by 2.4 percent last month to a seasonally adjusted annual rate of 515,000 units, the most since April. But sales in June had plummeted to a pace of just 503,000 — down from previous estimates of 530,000 — to mark the worst showing since September 1991. The average price of a new-home sold in July was $294,600, down 4.1 percent from a year ago. The median home price — where half sell for more and half for less — was $230,700, down 6.3 percent from last year. The National Association of Realtors reported Monday that sales of previously-owned homes rose in July as discounts lured buyers. However, the number of unsold properties hit an all-time high, an indication that the worst housing slump in decades is far from over.