New Home Sales Plunge to Record Low

January 2010 has the distinction of posting the lowest amount rate of new construction  ever sold in a single month since the Census Bureau began keeping the statistics in 1963.  Declining since November and December of 2009, January dropped another 6.1%.
Continued pressure from foreclosures and short sales pushing prices down, new construction is an unlikely prospect for home buyers.  While existing home values continue to lure the few courageous purchasers out into the market, home builders and developers continue to struggle in a depressed housing market.
The biggest challenge for the housing market will be the spring of 2010 and to see if any momentum can be sustained when the federal first-time home buyers tax credit expires at the end of May.