New single-family homes in the U.S. went down a bit at 0.2 percent in January to a seasonal adjusted rate of 481,000 units compared to last December’s 482,000 units according to a report by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau on Wednesday, Feb 25, 2015.
Economist had anticipated a much bigger drop at an estimate of 470,000 rate. Yet even with the slight decrease , January sales is still considered good since 2008 .
The December and January sales were the strongest since June of 2007 when the sales went to 480,000 units. “The fact that January sales numbers maintained the gains we made in December is encouraging news, especially considering harsh weather affecting certain parts of the country,” stated Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo.
“ In a promising sign, new home sales have been trending at post-recession highs for the past two months,” said NAHB Chief Economist David Crowe. “As the economy strengthens and mortgage rates remain low, we can expect continued upward movement in the housing market this year.”
At January’s sales pace of 218,000 in an inventory remains unchanged from December 5.4 month supply at the present sales rate .
Sales are totally different from region to region. The South had a 2.2 percent increase , the Northeast dived down to 51.6 percent last month since the geographic area often has severe weather conditions , getting a low 15,000 annual rate. Sales in November is a bit lower to yearly paces at 446,000 than December to a 482,000
The housing debacle started during the US market collapse in 2007. A lot of families lost their homes because they were not able to meet their mortgage payments. The housing market seem to recover in certain months only to lost the momentum once more. There are a lot of foreclosed homes for sale right sold at bargain prices.