New Home Sales Take a Breather


Census and HUD reported new home sales for December were down7% to an annual rate of 414,000. The first estimate of 2013 annual sales rate shows sales advancing 16.4% and the highest since 2008. In addition, the fourth quarter new homes sales were virtually the same as the second quarter of 2013.

The NAHB/Wells Fargo Housing Market Index showed a similar anticipatory pattern of falling in the spring followed by a decline in sales in the summer. Likewise, the HMI faltered a bit in the fall followed by sales falling slightly from third to fourth quarter.

Regionally, the Northeast declined 36.4%, which may have been a result of brutally cold and snowy weather. The South and West also declined 7.3% and 8.8% respectfully, both to levels seen in the second quarter. The Midwest rose 17.6% on a monthly basis but November was unusually low.

Inventory fell to 171,000 or down 2.8% but because of the slower sales pace, the month’s supply increased to 5 months. The number of completed homes for sale remains near historic low levels at 40,000 compared to a more normal level of over 100,000. Median sales prices rose 4.6% with no particular shift in the distribution of sales price.

The momentary dip is more likely a residual effect of the jump in interest rates, unusual weather and a readjustment to more sustainable level of sales. NAHB expects new home sales in 2014 to pick up again and reach 600,000 for the year.

New Home Sales and NAHB HMI

Tags: , , ,

0 replies


  1. Eye on the Economy: Residential Construction Spending Up 18% in 2013 | Eye on Housing
  2. Residential Construction Spending Up 18% in 2013 | Chelsea News

Leave a Reply

Your email address will not be published. Required fields are marked *