With 6.5 months of inventory of new homes or an estimated 175,000 new homes on the market. The build up of supply in the western region of the USA, is starting to shrink. That is still a lot of homes, you might be saying. Especially since banks are not lending yet. So, what gives? Does it mean builders will start building again? What about existing older homes? Will housing prices continue to dwindle? Yep, all are factors. There is still a big hole to dig out of, but we always like good news here at My Daily Real Estate News.

New Home Sales Up!
The Census Bureau reported an annual sales rate of 323,000 new
homes last month. That was up 7.3% from a revised rate of 301,000
in March.  Economists had forecast a sales rate of 300,000,
according to consensus estimates from Briefing.com.  While sales
have risen for two months in a row, the April rate was down 23.1%
compared with the same month in 2010.  In February, new-home
sales fell to a revised 278,000, marking the lowest level since
the government began tracking the data in 1963.  Sales in April
rose the most in the West, where the supply of foreclosed homes
has been shrinking. But sales remain sluggish in economically
challenged states in the Midwest and South.  The average price of
homes sold in April was $268,900, according to the report. That
was up from $250,000 in March, but down about 2.5% from the
beginning of the year.  There were an estimated 175,000 new homes
for sale. That’s the lowest level on record, according to Vitner.
At the current sales rate, it would take 6.5 months to sell
through that inventory, the report said.