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May 26, 2006
Record New-Home Supply
The Commerce Department's April new-home sales report shows that the supply of newly built dwellings has reached an unprecedented level. As a result, Wells Fargo & Co. senior economist Scott Anderson predicts a slowdown in residential construction during the coming months. Real estate analyst Tracy Cross of Schaumburg, Ill.-based Tracy Cross & Associates notes that builders continued to offer such incentives as lower interest rates and upgrades during February, March and April--traditionally the busiest months of the spring home buying season. According to Quicken Loans chief economist Bob Walters, an expanding supply of new homes and ongoing price gains will result in weaker sales in Miami and other overheated markets.
Posted by S. Germain at May 26, 2006 07:54 AM