With declining new- and existing-home sales in May following the expiration of the federal home buyer tax credit, Big Builder Online asked its readers how deep they thought the summer sales slump would go.
More than half of the respondents--55%--said they believe new-home sales volume will continue to get worse, in both volume and pricing. "More foreclosures are coming to the market, and the floor is not steady yet.
Credit is continuing to tighten, and FICO scores are at an all-time low. The number of ready buyers continues to dwindle, and there are too many downward pressures on the market," noted one respondent.
However, 22.5% of respondents said they believe sales will readjust after a breather of a few months, with the remaining respondents still on the fence.
"Volumes will slowly improve in fits and starts from here, but looming tax increases make next spring a wild card," another respondent said.
Many respondents are not optimistic about a return to sales normalization anytime soon. The majority of respondents--67.5%--said they are projecting to see sales normalization in Q3 2011 or beyond. "Without resolution of the credit problem for buyers and businesses, we will continue downward. The market will continue to soften," noted a respondent.
Still, some respondents are a little more optimistic with their projections:15% said they expect sales normalization in Q2 2011, 15% said Q1 2011, and 2.5% said Q4 2010.