Figures released this morning continued to paint a bleak picture for the housing market, signaling further price reductions and potentially elongating the time of a recovery. The U.S. Department of Commerce reported that housing starts fell by 550,000 units in December, or 15% compared with November results. Building permits dropped by 549,000 units, or 10.7% compared with the prior month.
Also, the Mortgage Brokers Association reported that loan applications, for new homes and refinancing, dropped by 9.8%. It is little wonder that the National Association of Builders reported, coincident with today's announcements, that its "confidence index" has dropped to an all-time low. The index measures new home sales, anticipated sales in the coming half-year, and potential buyer interest. A reading of 19 was considered low a year ago; today's announced level of confidence was 8.
Some builders are taking decisive action to stoke sales and appeal to those with cash and motivation. Yesterday, giant residential builder Toll Brothers announced it would provide 3.99% financing on 30-year loans for its properties. The loans, which max out at $417,000, require a 20% down payment but charge no points. That compares favorably with a national average of 4.96% and an average .7 points.
Among Toll Brothers golf communities in the southern U.S. are Hampton Hall in Bluffton, SC, near Hilton Head; The Brier Creek Country Club near Raleigh, NC; The Fairways at Skybrook, Huntersville, NC; Drayton Woods at Providence, Davenport, FL; Frenchman's Reserve, Palm Beach Gardens, FL; Jupiter Country Club, Jupiter, FL; Dominion Valley, Haymarket, VA; and many other locations across the U.S. You can check out Toll Brothers offerings at their web site [click here], and if you have any specific questions, let me know.
