While new-home sales rose from a depressed level in September, they’re still really, really low.
And home builders continue struggling. What a change from earlier this year, when builders were snapping up land in preparation for a recovery expected by year end. But those sales gains came as the government offered buyers a tax credit of up to $8,000. Since that offer’s April 30 expiration, builders have struggled to find stability without government support.
September’s new-home sales climbed 6.6% from a month earlier to a seasonally adjusted annual rate of 307,000 the Commerce Department said Wednesday. When compared to a year earlier, the rate tumbled 21.5%. September saw the fourth-worst monthly reading since 1963, though these statistics are notoriously prone to later revisions.
Regardless, sales “remained stuck at near rock-bottom levels,†said Patrick Newport, an economist with IHS Global Insight.
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