Numbers Game

December 17, 2006 Posted In Finance Market Conditions New Construction Real Estate News

Many real estate experts have reported that the new-home sales of 2006 will not meet expectations.

The numbers are now expected to fall 17.7 percent to just a little over 1 million. Seeing falling numbers fall on charts is usually not a good sign, however in this instance the numbers do not reflect the fantastic year that new-home sales had in 2006.

This past year new-homes sold ranked fourth in history. Many experts will admit that 2006 was somewhat like riding a bucking bull, every time you thought the market was going one way, without any indication it went the other.

This is part of the reason why predictions for 2007 have not been as pretty as those of last year. Experts are predicting that new-home sales will slide at least 9.4 percent.

Also to blame for this numbers slide are high construction costs in many areas. Housing is overpriced to compensate builders and lack of homes being sold is taking a bite out of profits