Real Estate News and Notes

Homebuiler Confidence Improves in May 2010

Across the country it appears that builders are gaining more confidence in the housing market and expect improved business over the next several months.  This is true despite the fact that the federal tax credit has expired.

In a report published by the National Association of Home Builders on May 17th,  its housing index, which tracks industry confidence, rose three points this month to 22.  This is the highest reading since August 2007. 

Although this is clearly an improvement, reading below 50 indicate negative sentiment about the market.  The last time the index was about 50 was April, 2006.  (ps – that is not a typo).
 

Although government incentives helped boost sales this spring, and many experts expect overall sales to slow in the second half of the year, homebuilders still remain positive.  

According to David Crowe, the trade association’s chief economist: "Builders are more comfortable that the market is truly beginning to recover, and that positive factors for buying a new home — low interest rates, great selection, stabilizing prices and a recovering job market — are taking the place of tax incentives to generate buyer demand,"

But, improvements are still relative as new home sales are down, nationally, 70% from their peak in July of 2005.

Maine New Homes for Sale: May 2010

Currently for sale in Southern Maine (York and Cumberland Counties), there are 498 properties that are described as "To Be Built", "New Construction.  Of these, 380 are single family homes and 118 are condos.  This represents 45% of the total inventory.