New Homes Sales Jump 6.5%
August 24, 2005, Wall Street Journal — Sales of new homes skyrocketed 6.5% to a record high in July, according to a separate Commerce Department report that trumped economists’ expectations. Following on the heels of a drop in pre-owned home sales and other signs of a slowdown in the housing market, the big jump in…
August 24, 2005, Wall Street Journal — Sales of new homes skyrocketed 6.5% to a record high in July, according to a separate Commerce Department report that trumped economists’ expectations. Following on the heels of a drop in pre-owned home sales and other signs of a slowdown in the housing market, the big jump in new-home sales might seem to be a sign of the umpteenth revival of the housing boom. And new-home sales could be a leading indicator of the housing market’s broader health. But new-home sales are also a decidedly small part of the total market, and these numbers, as with durable goods, are typically volatile. “In both cases, the huge swings appeared to reflect volatility rather than a meaningful change in the underlying trend,” UBS economists said. One trend may be developing, though: new-home prices fell last month for the third month in a row and are down 11% from a record high hit earlier this year.
The Afternoon Report [WSJ – 2nd Item]
Jason, that’s an excellent way for your co-op to make sure that more owners live in their units. I just wish I were able to come up with that kind of cash! I’m looking for a co-op that will allow 10% down and am having a bit of difficulty. Believe me – I’ll definitely be living in my 10% down co-op – after paying for everything, I won’t be able to *afford* to live elsewhere! 🙂
The current environment is one in which we may truly say, “Thank goodness for strict co-op boards.” Our coop demands 25% down, ample assets after making the down payment, and does not allow these reckless Interest-Option or Interest-Only loans.
sassy, how do you mean? last I saw, SD numbers were up 2% quarter/quarter (reads flat) so a disappointment to investors, but hardly a “pop”
See http://thehousingbubble2.blogspot.com
It’s such an interesting site on today’s overheated real estate market. It’s not NYC specific, but it’s good to see what’s happening outside the City. Excellent.
If it’s true that the state of a market can be driven by a sort of mass psychology, then the fact that people in the New York Real Estate World read this site means that the going opinion here directly contributes to the general sentiment about brownstone real estate in new york. It’s interesting that a mass opinion about a market could actually become self-fulfilling. Sure, it’s not Just Here, but . . . . the going opinion about the health of the New York real estate market has to be formed somewhere.
How much is a Brownstone worth ? What people will pay for it. What will people pay for it? What they think it’s worth (“affordable” seems to have gone out the window). Is there any valuation that doesn’t boil down to “what someone will pay for it” ? It’s certainly not a case of adding up the cost of the bricks and wood to get a grand total.