New Home Sales up 15.6%

New single-family home sales jumped 15.6% to a seasonally adjusted annual rate of 437,000 in January, according to a Department of Housing and Urban Development report [link opens in PDF] released today. After dropping off a revised 3.8% in December, this newest report reversed the sales slump and beat the consensus analyst estimates by nearly 15%. 

Source: census.gov. 

On a regional basis, the West led the nation with new-home sales increasing 45.3% from December to January. The South's 3.2% gain kept the region positive, but lagged behind improvements in the Midwest (11.1%) and the Northeast (27.6%). 

At the current rate of new home sales, there is an estimated 4.1 months of supply. This shrinking number is further evidence of a supply side growth issue. David Crowe, Chief Economist for the National Association of Home Builders, noted in a statement today that, "the razor-thin supply of new homes for sale is very concerning at a time when we are only about half-way back to what could be considered a 'normal' level of activity. Builders need to be able to refresh their inventories to keep the momentum going."

January's sales are 28.9% higher than a year ago, with the median sales price up just over 2% to $226,400.

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  • Report this Comment On February 27, 2013, at 7:40 AM, MikefromOhio wrote:

    The only problem with these numbers, are that they are beyond "fudged". If you look at the "unadjusted" numbers, new home sales were actually 31K inJanuary, 10K of which are still under construction, and another 10K haven't even been started yet!

    Take all "official" numbers with a grain of salt.

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