Tactics for Buying a New House
As the Housing Market Cools
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Sales of new single-family homes fell 4.3% in July from June, the latest sign that the housing market is cooling, the government announced Thursday. An earlier report showed home-builder confidence fell in August, with the National Association of Home Builders/Wells Fargo Housing Market Index dropping to 32 -- its lowest point since February 1991. An NAHB index rating below 50 means that more builders expect "poor" sales in the next six months than "good" sales.
WHAT TO DO: If you're shopping for a new home, there are ways to get more house for the money. Haggle. Some builders are offering no-money-down offers, financing assistance, and promises to match housing-market prices if prices dip before closing. Watch for price reductions from builders on completed homes or nearly completed ones. With cancellation of home-building contracts rising, such deals may be easier to come by. Ask for incentives or upgrades -- to draw buyers builders are offering free upgrades on everything from landscaping to granite countertops.
Slowing Sales
New single-family home sales, July, 2006. (thousands of homes)
| REGION | JULY 2006 | JUNE 2006 | JULY 2005 | % CHANGE FROM JUNE 2006 | % CHANGE FROM JULY 2005 |
| U.S. | 1,072 | 1,120 | 1,367 | -4.3% | -21.6% |
| Northeast | 56 | 55 | 98 | 1.8% | -42.9% |
| Midwest | 133 | 169 | 206 | -21.3% | -35.4% |
| South | 550 | 598 | 628 | -8.0% | -12.4% |
| West | 333 | 298 | 435 | 11.7% | -23.4% |
| Source: U.S. Census Bureau and the Department of Housing and Urban Development | |||||
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