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(EMAILWIRE.COM, March 05, 2007 ) SACRAMENTO, CALIF — In January of 2007 home and apartment construction fell by more than 14 percent according to the U.S. Commerce Department. This figure indicates that activity has been slowed down more greatly than anytime since August of 1997. By contrast, the pace for the same time period in 2006 was almost 38% faster.Economists, real estate professionals, investors, and homeowners alike have been watching the residential housing sector the way farmers look to the sky for rain, but so far there are no clear indications that the bottom has been found in the market. Following a five year boom in housing prices, the current slowdown in housing starts is another factor that causes many market watchers to hesitate before declaring an end to downward sliding prices.Oversupply of new homes and existing homes has led many homebuilders to offer free upgrades to entice coy homebuyers to purchase their offering in a crowded marketplace. According to David Seiders of the National Association of Home Builders, “the percentage of builders trimming prices has been increasing, and the use of non-price incentives is expanding as well.”Another commentator, Mark Zandi, of http://www.economy.com, said “this market will not find a bottom until this inventory is worked off, and the only way for that to occur is through further price declines.”The effects of oversupply and lowered demand are having an effect on homeowners in the Western U.S. According to Patrick McGilvray, J.D., President of Sacramento, California-based http://www.TheHomeBuyingCenter.com, “When homeowners who want to sell their houses fast are forced to compete with major homebuilders who can offer major discounts or free upgrades they are at a disadvantage. And since sales of existing homes make up approximately 85% of the single family home marketplace, this situation impacts a lot of people.”Contact:Patrick McGilvray, J.D. patrick@thehomebuyingcenter.comTel: 916-920-3278 http://www.thehomebuyingcenter.com
Patrick McGilvray, J.D.
Patrick McGilvray, J.D.
patrick@thehomebuyingcenter.com 
Source: EmailWire.com
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