Economy

New Home Sales up 9.6 Percent in January
Written by Sandy Williams
February 27, 2014
Sales of new single family homes rose 9.6 percent to a seasonally adjusted annual rate of 468,000 in January from a revised December rate of 427,000, according to data released by the US Census Bureau and US Department of Housing and Urban Development. The year-over-year increase of home sales was 2.2 percent above the January 2013 estimate of 458,000.
The January median sales price was $260,100 and the average sales price was $322,800. Inventory is still limited with the seasonally adjusted estimate of new houses for sale at the end of January at 184,000—a 4.7 month supply at the current sales rate.
The National Association of Home Builders says cold weather had little effect on sales in January. “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,” said Kevin Kelly, Chairman of NAHB.
Regionally, the South, West and Northeast made strong sales gains, up 10.4 percent, 11.0 percent and 73.7 percent, respectively. Midwest sales of new homes fell by 17.2 percent for the month.
“We saw a weaker sales number in December 2013 than was previously trending, and I think much of January’s increase is due to sales catching up with pent up demand,” said NAHB Chief Economist David Crowe. “Still, there is little doubt that historically low interest rates, affordable home prices and a healing economy are bringing buyers back into the marketplace.”

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)

Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.

Beige Book shows concerns about trade policy
Manufacturing was mixed, but two-thirds of districts said activity was little changed or had declined.

New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey

Construction adds 13,000 jobs in March
The construction sector added 13,000 jobs, seasonally adjusted, in March, but tariffs could undermine the industry.