Below is a chart showing how the new home market has dramatically shifted to the lower end market (or is it just that the values have shifted there due to lack of demand?).
Sales increased 0.7 percent to a 429,000 annual pace, less than anticipated, figures from the Commerce Department showed today in Washington. The worst
housing slump since the Great Depression may be drawing to a close as first-time buyers rush to take advantage of tax credits before a November deadline. Federal Reserve policy makers this week pledged to keep borrowing costs low to sustain the recovery past the time when the government stimulus measures wane.
“At least we continue to see an upward trend in place,” said Ellen Zentner, a senior economist at Bank of Tokyo- Mitsubishi UFJ Ltd. in New York. “New-home sales are battling existing-home sale prices, which are incredibly attractive with the foreclosure pricing.”