Sales of new homes fell 2.2 percent nationwide to a seasonally adjusted annual rate of 308,000 in February, the Commerce Department said Wednesday. It’s the lowest level on records that go back to 1963.
Mike Larson, housing analyst with Weiss Research in Jupiter, said the housing market remains "stuck in the doldrums." Still, Miami-based home builder Lennar Corp. said orders for homes have increased and it expects to turn a profit this year.
“Stepping back for a minute to look at the big picture, I can’t help but point out (again) how affordable housing is," Larson says. "Cheap rates and cheap home prices have restored the affordability that was sorely lacking a few years ago. Core buyers and investors are out there, and they’re buying product that’s priced right. This is why I don’t expect a huge new collapse in the housing market, just more churning near these depressed levels.â€
That outlook also applies to the local market for existing homes. Most analysts agree that freefalling prices and sales declines are behind us. Doesn’t mean the market suddenly will become hot again, but the worst appears over.
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