This is why you should only believe half of what you read.
Most of the article is spent explaining why new home sales are up.
“When you slash prices and pile on the incentives, you move product,” said Mike Larson, a real estate analyst at investment firm Weiss Research. “That was the lesson the auto industry taught us post-9/11, and that’s the lesson in today’s new-home sales report.”
Then at the end of the article it says:
There was also concern because all of the strength in sales came in one region of the country, the Northeast, which saw a surge of 43.1% from last April.
Sales were down 28.1% in the Midwest from April a year ago, and down 25.4% in the West. Sales fell a smaller 3.4% in the South.
So, it’s all much ado about nothing unless you are a Northeast home builder.
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Newbie 06.14.07 at 10:43 pm
Please keep in mind, if the builder has too much inventory and profits are down, they will also cut corners on the construction of the home. You might be getting a load of incentives and cut prices, but you may not be getting a well constructed home.