Feb. 24, 2010
CENSUS BUREAU/HUD: New Home Sales in January at 309,000
Lowest Pace Since Records Began in 1963
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Sales of new single-family houses in January 2010 were at a seasonally adjusted annual rate of 309,000, 11.2 percent below the revised December rate or 348,000, according to estimates released jointly Wednesday, Feb. 24, 2010 by the U.S. Census Bureau and the Department of Housing and Urban Development.
The rate of home sales is 6.1 percent below the January 2009 estimate of 329,000 and is the lowest number since records began to be collected in 1963.
The median sales price of new houses sold in January 2010 was $203,500; the average sales price was $254,500.
“This disappointing report highlights just how fragile the economic and housing recovery is right now, and the uncertainties that continue to weigh on consumers, particularly with regard to concerns about job security,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “Even with today’s exceptionally favorable home buying conditions – including low interest rates, stabilizing house prices and the availability of home buyer tax credits – many consumers simply weren’t confident enough to go forward with a new-home purchase in the beginning of this year.”
“While the overall economic picture has brightened somewhat, these numbers indicate that the road to a housing and economic recovery remains very uncertain. Many Americans have yet to see much evidence of improvement first-hand, and are therefore reluctant to consider a home purchase,” noted NAHB Chief Economist David Crowe. “Meanwhile, competition from below-market-priced foreclosed and short-sale homes poses an additional challenge to the new-homes market right now. Although we continue to expect a boost in overall sales activity prior to the expiration of the $8,000 and $6,500 home buyer tax credits at the end of April, unseasonably poor weather across much of the country may delay the full impact of those incentives until closer to the deadline.”
The Midwest was the only region of the country to register an increase in new-home sales this January, posting a 2.1 percent gain from an abnormally low December rate. The Northeast and West posted double-digit declines, of 35.1 percent and 11.9 percent, respectively, and the South posted a 9.5 percent decline.
While the overall number of new homes on the market remained virtually unchanged in January, at 234,000 units, the month’s supply rose to 9.1 from 8.0 in the previous month due to January’s slower sales pace.
In 2009, new-home sales declined to the previous record low of 374,000, a 23 percent drop from 2007. More than a million homes were sold annually from 2003 to 2006, the Commerce Department said.
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CENSUS BUREAU/HUD: New Home Sales in January at 309,000
Lowest Pace Since Records Began in 1963
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Sales of new single-family houses in January 2010 were at a seasonally adjusted annual rate of 309,000, 11.2 percent below the revised December rate or 348,000, according to estimates released jointly Wednesday, Feb. 24, 2010 by the U.S. Census Bureau and the Department of Housing and Urban Development.
The rate of home sales is 6.1 percent below the January 2009 estimate of 329,000 and is the lowest number since records began to be collected in 1963.
The median sales price of new houses sold in January 2010 was $203,500; the average sales price was $254,500.
“This disappointing report highlights just how fragile the economic and housing recovery is right now, and the uncertainties that continue to weigh on consumers, particularly with regard to concerns about job security,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “Even with today’s exceptionally favorable home buying conditions – including low interest rates, stabilizing house prices and the availability of home buyer tax credits – many consumers simply weren’t confident enough to go forward with a new-home purchase in the beginning of this year.”
“While the overall economic picture has brightened somewhat, these numbers indicate that the road to a housing and economic recovery remains very uncertain. Many Americans have yet to see much evidence of improvement first-hand, and are therefore reluctant to consider a home purchase,” noted NAHB Chief Economist David Crowe. “Meanwhile, competition from below-market-priced foreclosed and short-sale homes poses an additional challenge to the new-homes market right now. Although we continue to expect a boost in overall sales activity prior to the expiration of the $8,000 and $6,500 home buyer tax credits at the end of April, unseasonably poor weather across much of the country may delay the full impact of those incentives until closer to the deadline.”
The Midwest was the only region of the country to register an increase in new-home sales this January, posting a 2.1 percent gain from an abnormally low December rate. The Northeast and West posted double-digit declines, of 35.1 percent and 11.9 percent, respectively, and the South posted a 9.5 percent decline.
While the overall number of new homes on the market remained virtually unchanged in January, at 234,000 units, the month’s supply rose to 9.1 from 8.0 in the previous month due to January’s slower sales pace.
In 2009, new-home sales declined to the previous record low of 374,000, a 23 percent drop from 2007. More than a million homes were sold annually from 2003 to 2006, the Commerce Department said.
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