It's been years since we have seen any unsold inventory like this in Phoenix's new-home market. Too many builders went too far out and built houses that were too expensive.
Quotes about new-home (8 Quotes)
That means new-home prices will slow down.
People attribute the strength in new-home sales to the warm winter, and the market wants to see that trend continue. If new-homes sales drop too much then the talk of the housing bubble popping will get louder and will scare the market.
While new-home sales have been quite strong throughout 2005, we see a cooling of the market to a healthy and more sustainable pace in the months ahead, as substantiated by recent surveys of our builders. For 2006, we expect to see a 6 percent to 7 percent drop in sales, but certainly no reason for alarm. This would make 2006 the second or third best year in housing history.
The housing market continues to moderate -- and even January's fantastic weather was not able to increase new-home sales.
Gen Xers in particular are wielding their buying power to shape today's new-home characteristics, ... They're techno-savvy and more likely to be house-shopping on the Internet. They have a strong awareness of all their options.
The new-home sales market is the canary in the coal mine. Builders have a better clue as to what the right price is to move a house.
Not only have mortgage interest rates declined, but an expected rise in the second half of the year will be slower than in earlier projections. As a result, we now expect to set records for both existing- and new-home sales this year.