Lumber futures say buyers are looking for new homes as old home prices start plunging as the summer starts winding down
Paula Ranske
Jul. 13, 2007

The Federal Reserve is worried at the old home sales. The builder incentives and serious desire to move into a new home is making new home market find a floor. But that is not the case for the older homes. Older home prices are falling rapidly.

Lumber futures are showing some signs of robustness. Primary use of lumber comes from new residential home construction. The new home construction industry has adjusted itself and is ready to rebound. If Fed surprises all by lower the rates all on a sudden, the new home sales will jump. The stampede will make prospective homebuyers chase new homes for a while.

The older homes are in trouble. The wait to sale – the pending time in the market is increasing approximately 3 days per month on an average. That has made many realtors and seller panicked. The foreclosures and mortgage default on existing homes have skyrocketed. The investors are throwing towel in the Florida and California markets.

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READ MORE>>

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