Chris Cantell Discusses Markets: Prices of new homes are decreasing by kristina leskova

One of the main topics in United States of America is selling of houses and the consumers mortgages. These all belong to impacts of financial crisis. Sales of new homes rose in September by 2.7%. The builders were bullied to decrease the prices of new houses and this caused that the annual sales pace rose to 464 000 homes. When we take look at the inventory of unsold houses we will find out that the situation is not good. Although the inventory was in September reduced to 374 000 (in August it was about 404 000), this is still a high level of unsold homes (if we can compare with the past). This means that we would need 10 and half month to clear the overstock of homes (in comparison in August we would need 11 and half month). The median price of a new house reached a four-year low - 218 400 dollars. The prices are still lower, this could sound good for the customers, but another thing is that after the financial crisis and mortgage crisis, it is not so easy to take a mortgage. Because many people took mortgage but they were not able to pay for it. There is some supposal that the prices of homes will be under pressure until the mid-2009. In the northeast region the sales decreased by 21.4%, in western region by 22.7%, in Midwest region about 5.8% and in the southern region only by 0.7%. So the situation is different and we have to wait what will happen in the next months.

related story: http://news.yahoo.com/s/nm/20081027/bs_nm/us_usa_economy;_ylt=As9lcRaWQmAwU9EMFQ5PDNOs0NUE

by kristina leskova for PocketNews (http://pocketnews.tv)

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