Cooling Fast

John Burns reports The Housing Market Is Cooling Fast.

• Resale prices are down compared to one year ago in 53 of 150 markets we track, with declines spreading beyond Texas and Florida.

• New home prices, including builder concessions and incentives, have fallen -1.5% versus last year as builders have been caught with too many completed, unsold homes for the first time in many years.

• Resale prices have risen in 65% of the country over the last year, so pay attention to local dynamics.

Price Drops Spreading

With new home construction exceeding job creation in most areas, the supply of newly built homes is outpacing new demand. Homebuilders are lowering prices and payments to find demand.