Homebuilders sold fifty-six point seven fewer new homes than they did for fourth quarter two thousand four. It was the steepest quarterly drop in the six county region since the local housing boom began in two thousand two.
For the year, home sales were down seventeen point eight percent from two thousand four. Triggering the dip was a dramatic rise in home prices this decade which turned back many potential buyers. Materials price increases were one factor.
Beyond that, mortgage interest rates went up slightly. And a chill in the home resale market cut the flow of equity needed to buy expensive new homes.