There seems to be some good news coming from the housing market. After weeks of a sub-prime crises opera, the month of September has shown some increase in the sale of new homes. The US commerce department reports that new home sales were up 2.7% in September 2008.But, before you pop open the champagne, consider the fact that August 2008 saw a 35% decline in new home sales as compared to August 2007. So any slight increase is sure to reflect positively. The LA Times, report that Western US saw the biggest spike in the housing market, with a 23% increase as compared to August 2008.
People who delayed buying their 'dream home' are making a killing with the prices of houses in many states at an all-time-low. But despite this, builders are jittery and have decided to 'go slow' when it comes to current projects. In some markets there seems to be an inventory of homes for the next 10 months. If the demand for the housing market continues, then it would mean good news for builders, else they would be forced to discount their inventory further.
With threat of a recession, job losses and general distrust of the stock market creating a perfect financial storm, it looks like the housing market is not likely to see the rainbow anytime soon.
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