Normally, or historically, a new home sale occurred for every six resales. But who remembers normal? The ratio now has drifted to one new for every 16 existing home sales, and that ratio is not likely to decrease anytime soon, as the number of distressed or foreclosure sales expected to hit the market in the next 18 months may range from 3 to 8 million. Those historic numbers, however, discount the possible impact of a new “crop” of buyers from Gen Y, who may not opt for the used homes their parents bought as first-timers. This may emerge as a factor; also, the appeal of energy efficiency as a cost of ownership driver toward new.
Distress widens gap between resales and new home sales
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