U.S. New-Home Prices Plunging at Fastest Pace in 36 Years

Ann Arbor Realtor Kathy Toth was interviewed by CBS News which aired on local radio station WWJ. Discussed were market factors in the Ann Arbor area and South Eastern Michigan. Local inventory was at an all time high this summer and has diminished slightly as non serious sellers have removed some properties from the market. Many sellers are poised to re enter the market in the spring. And many auto workers are choosing the buy outs which will impact the market in the first quarter of 2007. On a national scale:

WASHINGTON (MarketWatch) - The median sales price of a new home fell 9.7% in the 12 months ending in September, the fastest price decline in nearly 36 years, the government said Thursday. The government reported that sales of new homes unexpectedly rose 5.3% in September to a seasonally adjusted annual rate of 1.075 million, the most in three months and well above the 1.05 million expected by economists. New-home sales are down 14.2% in the past year. Inventories of unsold homes fell 1.9% to 557,000, representing a 6.4-month supply at the September sales pace. It's the second consecutive decline in inventories. The inventory peaked at 7.2 months in July. Inventories are up 14.4% in the past year

Sincerely,
Kathy

By Rex Nutting
Last Update: 10:00 AM ET Oct 26, 2006