Home Sales Jump!

Home Sales Jump!

New home purchases unexpectedly jumped in April, a sign low lending rates and incentives may be reviving demand.

Elliot Koolik, of Koolik Group Realty says, “I have seen more activity showing homes as well as more interest from buyers in recent months.”

Purchases rose 16 % last month, the Commerce Department said in Washington. There are fewer unsold homes than in the past. The number of homes for sale at the end of the month dropped from 540,000 in March to 532,000. Although the median price of a new home dropped 11 % last month, the lower prices and incentives offered to buyers are rousing the demand for homes. April's sales were the highest so far this year.

Home purchases rose across the United States, with the exception of the Midwest which dropped 4%. Compared with a year earlier, new home sales were down 11 %.
Because of stricter lending standards, the National Association of Realtors lowered its forecasts for home construction and sales. It forecast new-home sales to fall from 1.05 million in 2006 to 864,000 this year.

New home sales, which account for about 15 % of total home sales, are considered a better leading indicator of the market than existing home sales because they are recorded when a contract is signed rather than when the sales are closed. Most sales of existing homes are counted when a contract closes, usually a month or two later.

The leveling off of sales late last year has suggested stabilization and homebuilders are using sales incentives to lure buyers and whittle down the inventory of unsold homes.


From Bob Willis in Washington +1-202-624-1837 or bwillis@bloomberg.net, with reporting from Brian Louis in Chicago.

About Wendy and Elliot Koolik: Wendy and Elliot Koolik are recognized leaders in the Boca Raton luxury and country club real estate communities. While they are active in all of Palm Beach County, they focus on Boca Raton, Delray Beach and Highland Beach. Since 2000, Wendy and Elliot Koolik have sold more than $339 million dollars in real estate by offering their clients a unique marketing plan for their home and an unparalleled level of customer service.

Wendy and Elliot are part of Koolik Group Realty, a family-owned and operated real estate company serving buyers and sellers since 1990. The real estate firm is known for its responsiveness to clients, knowledge of the neighborhoods they specialize in and, above all, for its boundless passion for the real estate business.

For more information, contact Wendy and Elliot by phone at 561.393.9997 x113, online at www.ElliotKoolik.com , by e-mail at EKoolik@Koolik.com or visit their blog at www.bocaratonluxuryrealestate.blogspot.com