New Homes and the EconomyAccording to MSNBC, new home sales hit record low. They decreased sharply last month. The Commerce Department said numbers fell to 12.4% in July from June to an annual sales pace of 276,600 dollars. The Maryland local movers found out that that’s the slowest pace on record since 1963. MSNBC says the past three months have been the worst.
New home sales fell everywhere in the U.S., by more than 25% in the West, 14% in the Northeast, 9% in the South and 8% in the Midwest. The median sale price in July was 204,00 dollars, down 4.8% from a year ago and 6% from June.
Weak sales in the real estate industry means that there are less jobs in the construction business which typically helps and boosts the economy. Apparently, All My Sons of Maryland found out that every home that’s built creates about three job for a year and generates about 90,000 dollars. This is according to the National Association of Home Builders. So if new homes aren’t being bought then there’s no reason to build. If there’s no construction, there are no jobs.
Builders are in competition with properties and homes that are in foreclosure and those have a lower price tag so new homes only made 7%of the housing market last year, down form 15% before the situation in real estate turned sour.
Unemployment and tight credit guidelines hasn’t helped the situation. Things got a little better with the tax credit for homebuyers, but since that’s not available anymore, so sales have dropped again. The local Maryland movers found out that from 1983-2007, there were over 600,000 new homes sold but after that time period and the real estate market busted, the number dropped to 375,000.
If you’ve found a new home in the Maryland area, don’t forget to book a moving day appointment with your local Maryland movers for a stress-free move. We have years of moving experience and have moved a wide range of furniture, personal belongings and items like pool tables and fitness equipment. All My Sons of Maryland is part of an enormous moving network with moving offices across many states in America from Texas to Florida to Georgia and even a moving office in Mexico. The Maryland moving specialists are part of a licensed and insured local moving company with great moving reviews and testimonials. When you’re ready to move into your new home just get online and get your free moving quote. It’s affordable and reliable!