No Spring Slowdown For New Home Sales

Dated: 02/28/2014

Views: 1375

Single-family new-home sales surged in January to a five-and-a-half-year high, giving the industry new hope that the new-home sector isn't heading for a slowdown this spring after all.

New-home sales rose 9.6 percent to a seasonally adjusted annual rate of 468,000 units in January, the highest level since July 2008, the Commerce Department reports.

Regionally, new-home sales in the Northeast jumped 73.7 percent in January; 10.4 percent in the South; and 11 percent in the West. In the Midwest, however, a cold snap was blamed for causing new-home sales to slip 17.2 percent. 

"The fact that the cold weather that hit much of the country didn't stop home buyers from going out and purchasing a piece of the American dream is a great sign," says Kevin Kelly, chairman of the National Association of Home Builders. "However, the very low supply of new homes on the market and the continued concern of available buildable lots still have builders cautious about getting ahead of themselves." 

The inventory of new homes for sale held mostly steady in January, remaining at a tight 4.7-month supply at the current sales pace. Last month, housing starts had posted their largest decline in nearly three years, sparking concern that the new-home sector was headed for a downward spiral with rising mortgage rates and home prices. 

But in January, new-home sales increased 2.2 percent from a year ago, and the median price of a new home rose 3.4 percent to $260,100 compared to year-ago levels. The pace of home-price rises has slowed in recent months, the Commerce Department notes. --Courtesy of RealtorMag.com

Latest Blog Posts

How To Go From Renter To Owner On Long Beach Island

 How to go from renter to owner on Long Beach Island?Located on the North End in Harvey Cedars, this three - bedroom, two bath duplex shares ownership with other members of a homeowner

Read More

LBI Tennis Kids And Adults

Sign up now for summer fun for yourself or children of all ages!Contact me for more information or call the LBI Foundation directly.They have so many wonderful programs and events throughout

Read More

Blessings Of The Fleet

Come join us and lend your blessings to all those out on the water!June 17 at 5:30 at Viking Village#watersafety #lbifishing #vikingvillage

Read More

Waterfront Living

waterfront living comes in all shapes and sizes. Contact me to help you find your spot on

Read More