Acquisition of new housing, the dreams of many prospective buyers in the current market conditions, loses its meaning.
Increase in the number of properties excluded from the owners for the debts on mortgages, knocks the price of second homes, while the new building, on the contrary, Expensive.
The median price of new homes in the U.S. are currently at 48% higher than the object went through the operation. On a more "healthy" market, this figure should not exceed 15%.
Such a variation in prices may slow market recovery. Yes, the share of new homes have a small percentage of total home sales, but their construction has a positive impact on the economy as a whole, giving the work a variety of industries. According to the National Construction Association, through the construction of each new home economy receives an average of three jobs and $ 90,000 in taxes.
When new housing no one buys, the economy, "blown away", reports The Associated Press.
"Many people say:" If I can buy a home advantage in the secondary market, then why should I new building? "- Says Mark Vitner, senior economist at the bank Wells Fargo. -« A relatively small group of people can afford a mortgage and down payment, as well as no worries for his work - only such people can buy a new home. "
Price spread between the "primary" and "secondary housing is increasing due to the fact that the finished homes are losing value because of an overabundance of alienated objects and fast sales, which occur in cases where the lender allows the owner to sell the house at a price below the mortgage issued for its purchase.
The median price of homes sold in the primary market in February fell to 13.9% compared to January, to $ 202,100 (the lowest since December 2003 level). Sales volumes for the same period decreased by 16.9%.
Housing prices and sales volumes are still very different in large cities. In cities with a large number of alienated property more objects that are sold at a significant discount, so the primary real estate there is quite expensive.
For example, in Atlanta, where in 2010 one twenty-third sold subject was previously removed for the mortgage debt, the median price of single family homes on the secondary market was $ 109,900 - about 12% less than in the previous year. Average price of new houses was almost twice as high.
In some areas, older homes previously valued higher. This was especially true of those places where almost no space left for development. Now, however, buyers can find an available object, even in those areas.
Builders cutting back sharply on construction volumes. Number of permits issued for new construction - an important indicator of future activity in the market - fell to its lowest level in half a century.
Set construction companies expect a recovery in sales of new homes and reduce inventories of unsold foreclosure. However, in 2011 in the U.S. is projected there will be about three million of seized objects and improvements will occur no earlier than three years
Don Isler, owner of E and R Construction, accuses the banks in this crisis. According to him, people are still interested in buying a new home built under their needs, but can not finance such an acquisition, as banks have tightened lending requirements.
Higher prices for new homes also contributes to rise in the cost of construction materials.
Due to the decline in the number of sold newly reduced effectiveness of the fight against unemployment, which currently stands at 8.9%. Under the reduction were already 2.2 million workers in the construction industry.
Do not forget about the psychological factors. In the past, most U.S. homes rose in price. Historically, that new homes rose in price by 1,5% per year faster than objects on the secondary market.
When their houses were increasing in price, people believe that with this increase their welfare. That means they spend more money, which gives further impetus to economic growth.