New Home Sales Slump 7%

Analysts expected the housing market to end 2013 on a higher note.

Jan 27, 2014 at 4:26PM

New single-family home sales dropped 7% to a seasonally adjusted annual rate of 414,000 for December, according to a Commerce Department report (link opens a PDF) released today. After November's report was revised downward from 464,000 to 445,000, this latest report pushes sales lower still. Analysts had expected a fairly steady annual sales rate of 450,000. 

New Home Sales


On a regional level, Northeast sales plummeted 36.4%, potentially due in part to bad weather -- similar to the "big freeze" that Markit says affected January manufacturing. The South and West regions both saw single-digit dips, while the Midwest made up for the rest with a 17.6% sales increase. In the past 12 months, national sales of new homes have still managed to squeak out a 4.5% gain. 

At the current rate of sales, there's an estimated 5.0 months of supply, compared with 4.7 months in November. The median house price increased a slight $1,700 from November to December to hit $270,200. 

This latest report follows on the heels of a National Association of Realtors report, which pointed to less-than-expected 1% growth for existing home sales in December. 

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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