Sales of newly built single-family homes in January declined by 0.9 percent to a seasonally adjusted annual rate of 321,000 units from a December rate of 324,000 units, according to the U.S. Department of Commerce. On a positive note, this rate is 3.5 percent above the January 2011 estimate of 310,000.
"Outside of the upwardly revised December number, this is actually the best sales pace we've seen since April of 2010, when the home buyer tax credit was in effect," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "Moreover, many recent indicators … have provided evidence that consumers are becoming more confident about making a home purchase."
The latest figures are "indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth," said NAHB Chief Economist David Crowe. "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."
