While new home sales only made up about 7% of the housing market last year, their economic indicators go much further.  Experts estimate that each new home built creates about 3 new jobs for the year.  Historically, the construction industry's success has driven our economic market. 

After the expiration of the $8000 tax credit, new home sales hit their lowest on record. The drop month to month is alarming as unemployment still remains high.  Clearly, the tax credit boost  gave us strong numbers for April which may not be a clear picture of the months to come.

The truth of the matter is that people are still making smart purchases, if any.

The good news for Houston is that the South's new homes sales fell only 25%, while the West's fell 53%. The current inventory nationwide is lower than it was but is still at 8.5 months which exceeds the healthy 6 months max.

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