Here’s a cute but meaningless graphic from ABC News that illustrates a very important statistic: New home sales are down. Way down. 8.3% down. It’s the worst month for new home sales in 6 years.
Why is this important? Because even though home builders were having so-called “blow out sales,” it doesn’t seem to be working. The price of a new home is dropping:
During the past year, sales of new homes have dropped some 21 percent, which is forcing builders to provide huge incentives to move the houses they’ve completed.
For August, the government said the median price of a new home sold was $225,700 – 7.5 percent lower than the same period last year. That’s the biggest drop in 37 years.
Inventories are up too, so it seems as if the “blow-out” deals are only going to get more “blown-out,” so to speak.
Our advice? If you’re currently negotiating a deal on a new home—don’t settle for a plasma TV or some free appliances. Put on your negotiating pants and your asskicking boots because you’re in charge.