Existing Home Sales vs. New Home Sales
Mortgage Bankers Association (MBA) reported that nation-wide sales of existing homes fell modestly in late-summer in comparison to new home sales. MBA predicts that existing home sales will pick up about 3% in 2009 and about 6% in 2010. Meanwhile, predictions are that new home sales will decline another 12% in 2009 before rising about 25% in 2010. Median home prices, for new and existing homes, will continue to decline this year and in 2009 before rising slightly in 2010.

Strength in Southern States
According to recent economic and housing statistics published by the National Association of Home Builders (NAHB), southern states have been leading the nation in home sales over the last 12 months. As of August 2008, southern states have contributed 60% of the 460,000 new homes sold, and 37% of total home sales (new and existing) in the United States. Forecasts for 2009 show an increase in housing construction (up from 2008) for several southern states; Georgia 30.4%, Louisiana 16.4%, South Carolina 12.4%, North Carolina 11.9%, Virginia 15% and Kentucky 25.6%. Although nation-wide predictions are still declining, numbers reflected above are encouraging to local builders and the construction industry.

Remodeling vs. New Construction
Many homebuilders are beginning to diversify into remodeling as a result of business that has held up fairly well compared to residential constructions and sales. Two niches where demand appears to be holding up better than average are ‘Green’ remodeling, and modifications to homes enabling residents to age in place. The struggling economy has also caused consumers to downsize their homes, thus expansion of outdoor living space is on the rise. Additions such as decks and outdoor entertainment areas will continue to increase.

Tip for Home Owners:
If you are having trouble making your mortgage payment, or even think you may have a problem, call your lender right away. Due to new options that are coming out of the housing recovery bill (signed this summer), most lenders are trying to work with consumers to avoid foreclosures. Executive Director of Mortgage Bankers of the Carolinas urges that you must act quickly; at a certain point, refinancing is no longer an option.