New Home Sales Rise, But Conditions Remain Unchanged
The market for new homes
showed some unexpected life last month. New home sales rose 11.1 percent
to annual rate of 300,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. While this marks a nice bump up from the February rate of 270,000, it does not yet suggest a sustained recovery, due to continued competition from distressed properties, high unemployment
and plunging home prices
. The growing shadow inventory of homes soon to be foreclosed on puts formidable pressure on builders, who have already reduced inventory.
Check out the Huffington Post
report for more on what the numbers mean.