Newly released data by the Commerce Department showed that the number of new homes built in April plummeted 10.6% on the previous month.
The seasonally adjusted rate fell to 523,000 homes per year, which is nearly 25% down a year ago.
“We’re still struggling to find the bottom here for the housing market,” said Michael Woolfolk, a senior currency strategist at BNY Mellon in New York.
“It does not bode well for construction in the near term, and there’s a good deal of overhang in terms of inventory.”
The disappointing construction data contributed to a sell-off on Wall Street.
Meanwhile several local Western Mass Realtors have indicated to WMASSLOCAL.WORDPRESS.COM that they have been sitting on a very large backlog of NEW BANK FORECLOSED properties which have yet to be listed in the MLS and are waiting to flood the local housing markets.
These BANK FORECLOSURES which are “in process” are a ticking time bomb which will further lower the local housing values. Those who buy now will see their investment loose equity.
Those who have held their homes for many years and are now ready to sell as they ease into their retirement will experience much lower returns on their “NEST EGG” sale.
The South Florida market is still experiencing much lower values than the preceding six month period. All house and condo values have fallen propitiously. As an example condos which were listed for sale at $208,000 in 2005 are now plentifully listed for sale at $60,000 with “NO BUYERS”.
A depressed housing market stagnates the economy. People can not get what they had hoped to gain from the sale of their current home so they feel stuck in their current situation and stay put. This will go on until the housing market backlog is totally removed from the market.