The National Association of Home Builders index dropped significantly in August as a slow selling spring and summer has sapped the confidence of the nations home builders. The index fell to 32 from its July level of 39. Nationally, new home sales fell 7 percent in the April to June period, more than the builders expected but less than those predicting a major housing bubble were expecting.
The housing market has seen an interesting split with some markets seemingly in free fall and others that are up significantly. That may be why there is not an all out panic in the housing sector. If you live in a state that is slumping, it looks like all hell is breaking loose. However, if you live in another state, it looks like the market is holding its own very well.
The Five Biggest Declines in Homes Sold:
- Arizona, down 26.9%;
- Florida, down 26.7%;
- California, down 25.3%;
- Virginia, down 23.9%,
- Nevada, down 23.5%.
The Five Biggest Increases in Homes Sold;
- Alaska, up48.6%;
- Arkansas, up 17.9%;
- Texas, up 11.3%;
- North Carolina, up 11%,
- Vermont, up 9.1%
And one last thing to consider. The 5 states that are in decline also had record sales last year. We used the example recently of Florida, which is seeing a 26.7 percent decline yet will post its 3rd best year ever. Obviously last year was a huge outlier and should not be considered normal.
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