Monday, October 02, 2006

New Home Starts Down 16 Percent

Got a look at the Courier-Post online story that says new-home builder are aggressively controling their inventory because of the cooling of the resale housing market.
"The new home market is directly dependent on move-ups or move-overs (empty nesters). In order for those two dynamics to continue, the resale market must be robust," said Patrick O'Keefe, executive director of the New Jersey Builders Association.

In other words, until the resale market swings toward a healthy number of interchanges between buyer and seller or buyer confidence rises new home builders are going to have to be careful to sell their inventory to remain profitable.



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