As existing-home sales continue to increase, new-home builders are having a tougher time in the post-recession era. The U.S. Department of Commerce released new single-family home sales data Thursday showing sales declined 12.6 percent in January to an annual rate of 284,000 units from 325,000 in December. The latest mark is 18.6 percent below the January 2010 estimate of 349,000.
As existing-home sales continue to increase, new-home builders are having a tougher time in the post-recession era. The U.S. Department of Commerce released new single-family home sales data Thursday showing sales declined 12.6 percent in January to an annual rate of 284,000 units from 325,000 in December. The latest mark is 18.6 percent below the January 2010 estimate of 349,000.
The decline did not surprise National Association of Home Builders Chief Economist David Crowe. "This latest report shows new-home sales activity returning to a rate that is consistent with the low level of activity seen in the third and fourth quarters of 2010," he said. As previously reported, the final 2010 housing data showed there were just 321,000 new single-family home sales recorded in 2010, the lowest figure since the government began tracking that data in 1963.
Yet, Bob Nielsen, chairman of the (NAHB), is optimistic about the coming months. "While poor weather conditions likely played a part in keeping potential buyers on the sidelines this January, we do expect consumer demand to improve somewhat along with job-market gains heading into the spring buying season," he said.
