New Home Sales Plummet in November
Sales of new homes plunged in November by the largest amount in nearly 12 years, providing the most dramatic evidence yet that the red hot housing market over the last five years is starting to cool down.
Last month’s decline was even bigger than the 8.7 percent drop-off that Wall Street analysts had been expecting. While sales of both new and existing homes are still on track to set records for a fifth straight year in 2005, analysts are forecasting sales will decline in 2006 as the housing boom quiets down.
Some of that price moderation was evidenced in the November report, which showed that the median price of a new home sold was $225,200 last month. That was up just 0.3 percent from November 2004, the weakest year-over-year price change in two years. The November median price was down 4.1 percent from the October median sales price of $234,800.
And the realtors chant:
This is only seasonal!!
It was a very cold November!!
The avian bird flu scare kept people from the open houses!!
Everyone was too busy electing our new governor!!
This is normal!! School season started 2 months ago and everyone knows that houses don’t sell when school’s in session!!
The Baby Boomers were all on vacation!!
We blame it on high energy costs!!
High gasoline costs!!
Didn’t Terry Schiavo have something to do with this??
We’re not sure why, interest rates are at HISTORIC lows!! People should be buying because it will never happen again!! Never!!
The NYC Transit strike!! Oh wait, we can’t use that one until January, our bad.
Exactly..I could not have said it any better!!
The spin ain’t working anymore. PLUNGEEEEE!