April 1, 2009
New-Home Sales Turn Upward In February

Providing a welcome glimmer of hope that potential home buyers are starting to return to the market, sales of newly built, single-family homes rose for the first time in seven months this February, according to Commerce Department figures released today. The report showed a 4.7 percent gain in new-home sales to a seasonally adjusted annual rate of 337,000 units in February, along with upwardly revised figures for each of the previous three months.

“This is an encouraging sign that the market may finally be reaching a bottom,” said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “Consumers are beginning to take advantage of the first-time home buyer tax credit, historically low mortgage rates, very affordable home prices and the great selection of homes they have to choose from in the midst of a real buyer’s market. For those with good credit and job security, the stars are all aligned to buy a home at this time.”

“February’s gain may also be tied to demand delayed in January, when potential buyers were waiting to see what kind of incentives would be included in the economic stimulus package,” said David Crowe, NAHB Chief Economist. “Keep in mind that the January-February average for new-home sales is still below the fourth quarter 2008 average, and we do expect sales numbers to bounce around a bottom before climbing slowly mid-year and beyond. Nevertheless, it is apparent that measures within the recent stimulus package (including the first-time buyer tax credit as well as higher mortgage ceilings for conforming loans), Fed moves to lower mortgage rates, and home builder sales incentives are helping to reverse the three-year slide.”

Crowe cautioned that certain negative factors must still be addressed, including tight credit conditions for home buyers as well as the still-rising inventory of foreclosed homes on the market.

Indicating that builders are keeping a tight rein on inventories, the number of unsold new homes on the market continued to decline for the 22nd consecutive month to 330,000 units in February. The months’ supply also declined, to 12.2 in February, down from 12.9 in the previous month.

Regionally, new-home sales rose strongly in the two largest markets in February, with gains of 9.7 percent in the South and 6.6 percent in the West. However, sales numbers declined in the Northeast and Midwest, by 3.3 percent and 9.1 percent, respectively.

Source: National Association of Homebuilders, March 25, 2009

Next Article >>



Steel Framing Alliance
1201 15th St., NW,
Suite 320
Washington, D.C. 20005
Phone 202.785.2022
Fax 202.785.3856

- Asterisk Consulting Inc.
San Francisco, CA
- Bob D. Campbell & Co., Inc.
Kansas City, MO
BSE Structural Engineers
Lenexa, KS
Clinton Woodward – NMSU
Las Cruces, NM
- Cornerstone Marketing Grp
Delta, BC
Draper Aden Associates
Richmond, VA
Fremont, CA
- James Williams
Webster, TX
- Key Architecture
Rohnert Park, CA
- Posner Engineering Inc.
Keller, TX
- Private Design Professional
Chestertown, MD
- R4 Engineering, PLLC
Lebanon, TN
- Rentz Engineering Design
Waycross, GA
- Stanley-Bostitch
East Greenwich, RI
- TLCP Structural
Phoenix, AZ
April 20, 2009
Construction Solutions with Cold-formed Steel, Structural Engineers Coalition of Connecticut Cromwell, CT More

April 21, 2009
Construction Solutions with Cold-formed Steel, Structural Engineers Association of Massachusetts


April 22-23, 2009
Steel Doing it Right
Buffalo, NY More


May 8-10, 2009
National Home Builders Association Green Building Conference - The Green of Green Dallas, TX More


May 20-21, 2009
California Steel Framing Forum and 2009 CFSEI Annual Conference Anaheim, CA More





Become a Member | Unsubscribe

Brought to you by the Steel Framing Alliance (SFA) on the first Wednesday of each month, Framework Online arms you with the latest news and commentary on the steel framing and construction industries. In addition to industry headlines, trends and project profiles, Framework Online provides information and ideas that will better enable members to increase their participation in the residential and commercial construction markets.