Crisis in new-home market by Nina Gotzmannova

It seems like no one is interested in buying a new home in United States. This year is the worst year since 2000 for the house builders, house sellers and of course for U. S. economy. People have never bought less new homes like this year. In July people were more likely to buy a new home. But in August the numbers showed something else. Sales dropped more than 8%. According to Commerce Department there were only 795.000 houses sold in August. This is really a sorrowful record, because there have never been sold less houses since 2000. In comparison with several years in past the sales has dropped almost 21%. There is also a large gap in the prices. The median price of sold houses was in August $225.700. The price fell by 7.5%. It is the biggest drop in percentage terms in 37 years. The average sales price tumbled too, with 8% slightly more than the median price. A new house was bought in August for $292.000, which is the lowest price in almost two decades. But after all, there is at least some good news. The sales fell only in the South and in the West. In Northeast and Midwest people are still buying houses, and more than in July. This all is a sign of the subprime mortgage crisis and housing bubble, the economy crisis which began in United States in March this year. The crunch credit already showed the unpleasant results, now in a form of decreasing real-estate market.

related story: http://news.yahoo.com/s/ap/20070927/ap_on_bi_go_ec_fi/economy;_ylt=AkrUTHM6TiqH5WMtt8x14wSs0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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