The New Construction Update

New Construction
by Adam Pasquale and Realty Times Inc

According to the National Association of Home Builders (NAHB) -- sales of "newly build" single-family homes posted a gain in September.

Regionally, sales activity gained 22.7 percent in the West and 0.7 percent in the South in September, but at the same time declined 21.4 percent in the Northeast and 5.8 percent in the Midwest.

Despite these positive statistics, NAHB Chief Economist David Seiders, put things in perspective saying, "Today's gain in new-home sales followed a downward revision for August and was almost entirely concentrated in the West region, where sales bounced back from a very low level in August. The fact is that housing demand remains fundamentally weak and the housing contraction continues to weigh heavily on the financial markets and the overall economy. Without question, an additional economic stimulus package – including substantial measures to spur home buying and limit foreclosures – is necessary to support home prices, stabilize financial markets and limit the severity of recession."