NAHB reports that sales of newly-built, single-family homes declined by less than one percent in January from an upwardly revised number in the previous month; this brought them to a seasonally adjusted annual pace of 321,000 units, according to data jointly released by HUD and the U.S. Commerce Department Feb. 24.
"Outside of the upwardly revised December number, this is actually the best sales pace we've seen since April of 2010, when the homebuyer tax credit was in effect," noted Barry Rutenberg, chairman of NAHB and a home builder from Gainesville, Fla. "Moreover, many recent indicators - from our builder confidence surveys to housing starts and permits data and the expanding list of improving local markets - have provided evidence that consumers are becoming more confident about making a home purchase."
"New-home sales this January were up 3.5 percent from the same time last year, and up one percent from the fourth quarter average for 2011," added NAHB Chief Economist David Crowe. "This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth. Increasingly, potential buyers are feeling better about their financial situation and their ability to buy a home, but the challenges posed by tight credit conditions and appraisal issues continue to slow that process."
New-home sales slipped 0.9 percent to a seasonally adjusted annual rate of 321,000 units in January, which was the second-fastest pace of sales activity since April of 2010. This decline was due to a 24.5 percent reduction in the Midwest and a 10.6 percent reduction in the West. Meanwhile, the Northeast posted an 11.1 percent gain and the South bounced back from a substantial decline in the previous month with a 9.3 percent increase.
The inventory of new homes for sale continued to shrink to another record low in January, hitting 151,000 units, or a 5.6-month supply at the current sales pace.
Advertisement
Related Stories
Business Management
How to Create a More Inclusive Workplace for Women in Construction
Consider these tips and techniques to attract and retain more women in your home building company and reap the benefits of a more diverse workforce
Business Management
AI in Home Building ... What Now? What Next?
Artificial intelligence is coming to home building. How can builders use AI in new-home construction? Start with this primer
Business Management
Ways to Improve Home Building Productivity, Part 2: Automation
Home builders can maximize efficiencies gained through simplification and standardization by automating both on-site and back-office operations