JUNE 2008 W4 ALERT
Builders Association Says Latest Home Sales Data is
“Evidence of Severe and Ongoing Weakness” in Housing Market
<June 25, 2008>Sales of newly built single-family homes dropped 2.5% in May, virtually wiping out the gain of last month. The National Association of Home Builders (NAHB) called the Commerce Department’s report “the latest evidence of severe and ongoing weakness in the nation’s housing market” and called for government intervention in passing a housing stimulus package to help right the housing ship.
NAHB President Sandy Dunn said, “The fact that new-home sales are occurring at such a slow pace in the middle of the home buying season, with inventories only barely inching downward, is a strong indication of just how critical it is for Congress to move forward immediately with housing stimulus legislation.
Says the NAHB Chief Economist, David Seiders, “Home builders have been doing everything they can to limit the production of new units and move existing inventory, but it hasn’t been enough to make a significant dent in the backlog yet.”
According to the Commerce Department’s May report, existing inventory of unsold new-homes dropped just 1.7% and stands at 453,000 units which at current rate of sales is a 10.9 month supply.