New Home Sales Drop 33% Nationwide in May

Since the federal government began tracking new home sales in 1963, there has never been a month like May 2010. With the federal tax credit program expiring, expectations were already low, but actual sales of new homes across the country established a record low. Homebuilders report that they sold newly-constructed homes at an annual rate of 300,000 in May, 32.7 percent below the previous month’s rate of 446,000 and around a third the level of new homes sold during normal economic conditions. Housing analysts had projected adjusted sales of around 400,000 for May, but were genuinely surprised when actual sales data became available. “We would be lying if we said the size of the drop was not shocking,” said one analyst for brokerage firm Miller Tabak. Even with near-record low interest rates, new homes are not selling and sales were lower in May than they were during the economic recession of the early 80s when mortgage interest rates hovered near 20 percent. May’s sales numbers eclipsed the previous record low set in September 1981. Housing consultants expected the tough time to continue for homebuilders. One consultant expressed the idea that builders were exacerbating an already-tough situation by saying, “I think that builders should bite the bullet and stop building houses. They keep dumping new inventory into the market when what the market really needs is a moratorium.” Large inventories of new homes for sale in Louisville and other housing markets across the country make this the ideal time to buy your dream home at the best price in a generation. For the area’s best selection of new and existing Louisville homes for sale, call Louisville Properties today at 502.744.9504 or browse the extensive Louisville real estate listings on our site!

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James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

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Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

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