Star News

While sales of new homes rose last month, total home sales reported were the second weakest month on record. The lackluster economy has made potential buyers skittish about shopping for homes. New home sales rose nearly 24$ in June from the prior month, to a seasonally adjusted annual sales pace of 330,000, the Commerce Department said Monday. May's number was revised downward to a rate of 267,000, the slowest pace since 1963, the first year such data has been recorded. Sales for April and March were also revised downward.

High unemployment, low job growth, and tight credit have kept consumers from buying homes. The industry received a boost this spring when the government offered tax credits to homebuyers; but since the incentive expired in April, those looking to purchase homes have dropped, despite the lowest mortgage rates in decades.

Total home sales are down 72% from their peak annual rate of 1.39 million in July 2005. More than 600,000 new homes were sold annually from 1983 through 2007. After the housing bubble popped, new home sales plunged to 375,000 last year; the weakest yearly total on records dating back to 1963. New home sales made up about 7% of the housing market last year; down from approximately 15% before the bust.

Builders have sharply scaled back construction in the face of the severe housing market bust. The number of new homes listed for sale in March fell 1.4% to 210,000, the lowest level in nearly 42 years. The median sales price in June was $213,400, down 0.6% from a year earlier and down 1.4% from May. In the Northeastern United States, new home sales rose by 46%; 33% in the South and 21% in the Midwest. The Western United States posted a decline of nearly 7%. We will keep you posted…

Senior Housing Multifamily Construction Under Application

Penstar originated a $3,850,000 ground-up construction/mini perm application for a 100% affordable seniors housing property in Southern California. The three-story wood frame 65-unit project already boasts a 130-person waitlist and will house residents 55 years of age and older. The developer, experienced in this product type, was able to negotiate a recorded forgivable soft-second trust deed with the City for the majority of the equity required. To learn more, please contact David Stepanchak at (818) 883-9611 or DStep@PenstarAdvisors.com.

Helpful Humor

“New Number”

After directory assistance gave me my boyfriend's new telephone number, I dialed him and a woman answered the phone. “Is Robert there?” I asked.

“He's in the shower,” she responded. “Please tell him his girlfriend called,” I said, and hung up.

When he didn't return the call, I dialed again. This time a man answered. “This is Robert,” he said.

“You're not my boyfriend!” I exclaimed.

“I know,” he replied. “That's what I've been trying to tell my wife for the past half-hour.”