Real Estate

There has been a decline in the sale of new homes, but the decline is much weaker than what was expected because of the economy. In an article by BBC, it says that there was a .6% decline in new home sales after a jump in February. The annual rate of new homes built and sold in March was 356,000. A year prior, this number was near almost 1.1 million. Numbers released reccently show that there has been a large decline in the number of homes being built in March, which may be the second lowest on record. For a middle income family, the average price of new homes in the United States is roughly $250,000. This seems like an accurate depiction of the price of both middle class homes, as well as those homes built and sold at prices lower and higher than this price. The number of new homes also shrunk from 328,000 to 311,000 which is roughly 6%. These numbers are giving analyzers of the real estate market hope that the rela estate market is beginning to stabalize. Over the next few months, people may begin to invest back in the real estate markets. Homes of prices have fallen from the average of $328,000 to $250,000; which means investors (those who have money left) will begin to buy homes and possibly rent to those who can not afford to buy a home. Along with the job market, the real estate market will also be determined by consumer spending.