Some Good News

From the Financial Times:

Unexpected rise in new US home sales

By James Politi in Washington

Published: October 27 2008 16:25 | Last updated: October 27 2008 16:25

The pace of new home sales in the US rose by 2.7 per cent last month – a much better figure than forecast by economists – as low prices fostered a flurry of activity in the stricken US housing market amid an intensifying financial crisis.

New home sales rose to an annualised rate of 464,000 units after dropping by a steep 12.3 per cent in August, the US commerce department said on Monday. The inventory of unsold homes also dropped, from 11.4 months’ supply in August to 10.4 months’ supply last month. The median sale price for a new home fell to $218,400, its lowest level in four years.

But economists have cautioned that the stabilisation of home sales reflected buying conditions in July and August, and could be threatened by the deeper economic woes in late September and October.

October 26 MLS Update

In the past 48 hours, there have been eight new listings in the Zip Code, and only one in The Meadows and that is a re-listing of a home on Meadow Glen Way East, now for $399,000. My suspicion is that it has not sold because it is close to my home.

 

During that same two days, six cars in the Zip went into Pending, and nine homes closed escrow – no homes in The Meadows went into Pending or closed escrow. The most expensive of the homes that closed escrow was $417,000.

 

Still and investors’ market – and a pretty strong one at that.