Subprime Blogger

Your Mortgage News Source

September New Home Sales Drop; First Decline Since March

Posted on | October 28, 2009 | No Comments

With the expiration of the first time home buyers tax credit looming the sales of new home dropped in September.  The Commerce Department reported that new home sales fell 3.6% which is the first decline since March.  Sales for the month of September were down 7.8% from a year ago.  The median sales price ($204,800) for new home was up 2.5% from August but down 9.1% from a year ago.

The only region to see sales rise was the Midwest which was a 35% increase.  The Northeast was unchanged, the West saw an 11% decline and the South saw a 10% decline.  Many homes have been sold while still under construction and many of these buyers are worried they will not be able to close before the first time home buyers tax credit deadline of November 30th.

Many economists feel that if the tax credit is not extended that we could see a significant pullback in the housing market.  The Case-Shiller data has reported four consecutive months of increases in home prices but that could change drastically if the tax credit is not extended.  The decrease in new home sales in September could be strongly related to the expiration nearing.

Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.

Current News

Author: Heather Best

Category: Current News

Comments

Leave a Reply





    • Subprime Blogger is Digg proof thanks to caching by WP Super Cache!