Printer Friendly

NEW HOME SALES UP 2.2 PERCENT IN OCTOBER

 NEW HOME SALES UP 2.2 PERCENT IN OCTOBER
 WASHINGTON, Dec. 3 /PRNewswire/ -- Although housing


affordability has improved and interest rates are at 14-year lows, new home sales remained relatively flat in October, rising 2.2 percent to a seasonally adjusted annual rate of 513,000, according to figures released today by the Commerce Department.
 "This shows that low interest rates alone will not stimulate the economy as long as consumers continue to remain fearful over losing their jobs and the direction of the economy," said National Association of Home Builders (NAHB) President Mark Ellis Tipton. "We need an economic stimulus package and we need it now to boost consumer confidence."
 Tipton, along with leaders of 11 other real estate organizations, met with President Bush and his top economic advisers yesterday to urge the President and Congress to work on a bipartisan package for economic growth.
 "I was extremely pleased with our meeting with President Bush," Tipton said. "He is genuinely concerned about our problems and is looking for ways to bring about a strong and extended economic recovery."
 On an annualized basis, new home sales are up only 1.3 percent since April, and with total housing starts forecast at under 1 million for 1991, the lowest level since 1945, NAHB is pushing for an economic stimulus program that would include a temporary tax credit for first-time home buyers and allow tax- and penalty-free withdrawals from IRAs for down payments on homes.
 "These two items alone would spur an additional 250,000 housing starts and put 450,000 unemployed construction workers back on the job, thereby softening the recession and getting us on the road to recovery," said Tipton.
 NAHB's economic growth package also includes reinstating the deductibility of passive losses for real estate practitioners and providing a positive regulatory environment where sound loans can be made and the credit crunch can be eased.
 "This will go a long way in helping to stabilize real estate values and help the economy," Tipton said. "The President has done a good job to get bank regulators from discriminating against real estate loans and it is critical that banks make credit available for housing and real estate loans that are financially strong in order to rekindle confidence in the banking system and stimulate new construction, new jobs and the economy."
 New home sales in September were revised 12.5 percent higher from an annualized rate of 446,000 to 502,000. New home sales have hovered near 500,000 since February of this year and are presently running 4 percent under last year's total of 534,000.
 Regionally, new home sales declined 1.5 percent in the Northeast and 5.9 percent in the West. They rose 8.1 percent in the Midwest and 6 percent in the South.
 -0- 12/3/91
 /CONTACT: Jay Shackford of the National Association of Home Builders, 202-822-0406/ CO: National Association of Home Builders ST: District of Columbia IN: CST SU:


MH -- DC010 -- 8937 12/03/91 17:24 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 3, 1991
Words:504
Previous Article:USW: INEXPERIENCE CAUSES ACCIDENT AT LUKENS STEEL
Next Article:NEWBRIDGE NETWORKS ANNOUNCES SECOND QUARTER RESULTS
Topics:


Related Articles
CHARLOTTE EMPLOYMENT AT RECORD HIGHS; CAR SALES STRONGEST IN FOUR YEARS
NEW HOME SALES DIP IN NOVEMBER
Median Price of a Home in California Increases 17.4 Percent in October, 23rd Consecutive Month of Double-Digit Increases, C.A.R. Reports.
SALES OF HOMES COOL IN OCTOBER EXPERTS SAY LOCAL HOUSING MARKET HASN'T BOTTOMED OUT YET.
N.H. home sales rise as prices continue to drop.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters