The drop in home sales in January has disappointed many, especially compared to December’s surprisingly strong sales data. Zillow compiled some takeaways.
“New home construction during the recovery has skewed toward higher-end homes as builders have seemingly opted for a business strategy centered on lower volumes and higher prices,” writes Zillow Senior Economist Aaron Terrazas. “Many expect this will begin to change in 2015, with builders gradually moving toward more modestly priced market segments. But one month into 2015, there’s not a lot of evidence pointing in that direction, although the 2015 building season has yet to really get underway.”