Even though newly built homes sold in record-low numbers last
year - raw estimates place the figure at 302,000 units - the fourth
quarter showed signs of improvement that could be an effective
jumping-off point for 2012 sales.
The 2.2 percent decline in new home sales, to a seasonal
adjusted rate of 307,000 units, followed three consecutive months
of gains, so even though the year ended on a down note, the market
had showed signs of improvement throughout most of the fourth
quarter. Still, compared to 2010 levels - 323,000 units - new home
sales dropped by 6.2 percent last year.
Despite these figures, the National Association of Home Builders
(NAHB) anticipates sales will rebound by about 18 percent in 2012
on the back of slight gains observed at points throughout the
quarter.
"The three-month moving average for new home sales and numerous
other indicators - such as builder confidence, new building
activity and the razor-thin inventory of new homes for sale - show
that the market is basically holding its own, and no longer moving
backwards," NAHB chief economist David Crowe said in a
statement.
Several factors are currently depressing new home sales - tight
credit restrictions from lenders, general economic malaise and
widespread difficulties selling homes. Experts anticipate
overarching economic woes could linger for some time, so buyers may
need to rely on the assistance of a mortgage lender that caters to
borrowers who are more high-risk.
Sellers are also affected by a depressed housing market. The
average price of a new home sold last month was $266,000, so if
potential sellers think that selling their homes now would not be
financially wise, they may instead opt to conduct a mortgage refinance,
supported by an experienced lender. When considering when to refinance,
homeowners should analyze home prices and interest rates on both fixed-rate loans and adjustable-rate
loans, which are currently quite low.
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