Asheville New Home Sales Plunge

New home starts in February dropped 22.5 % from the previous month this is lowest in nearly two years and is the second lowest level on record.

Builders continue to feel downward pressure from a high inventory of nationwide foreclosures and the tightening credit on mortgage loans.  However it will be no surprise that in two years we will have a shortage in new homes and will start the turn to recovery for new home contractors.

Within in a year I believe we will start seeing an increase in new home sales as resale home inventory depletes.  

Asheville Real Estate seems to be following the national trends and may last a little longer because of the tremendous amount of new home construction from 2003 to 2006.

Waynesville-Maggie Valley Real Estate because of the popular log cabins may see some increases this season.

Even with the drop in starts builders seemed optimistic in sales expectations for the next six months will start to increase.