Foros de la Plataforma por una Vivienda Digna

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U.S. house prices fall by 7.3 per cent

The price of new homes actually fell in the United States last month as mortgage rates — which have edged upwards to their highest level in nearly four years — put a damper on demand.

In its monthly report Wednesday, the U.S. Commerce Department said the median price of a new home fell by 7.3 per cent in April, from the month before, to $238,500 US.

However, house prices remained slightly ahead of last year's levels, allowing realtors to breathe a bit easier.

The department made up for the depressing news on the price front with unexpectedly good news on sales.

Sales of new single-family homes rose by a surprisingly high 4.9 per cent last month to a seasonally adjusted annual rate of 1.198 million units, the highest rate since last December.

The double-barrelled report Wednesday both confused and pleased U.S. economists. They had expected a decline in sales but a continuing rise in house prices.

The unexpected factor that confused the markets in April was the inventory of unsold homes. Optimistic builders have put up so many new houses in recent months that they have swamped the market, sending prices down sharply.

There are now 565,000 unsold new homes for sale in the United States, enough to supply the market for the next 5.8 months.

The recent report may have surprised U.S. economists, but they are still holding to their opinion that the good times will soon end for the red-hot housing sector. Rising mortgage rates will inevitably cool the market, they say, ending a five-year string of record sales.
http://www.cbc.ca/story/business/national/2006/05/24/houses-wed.html