January New Home Sales Soar 15.6%, December Better than First Reported

New home sales in January jumped to arnseasonally adjusted annual rate of 437,000, a 15.6 percent increase over thernDecember number of 378,000 and a 28.9 percent increase compared to January 2012rnwhen sales were at a rate of 339,000. rnThe December figure was originally reported as 369,000 which had been anrn-8.8 percent drop from the previous month. </p

According to the new home sales reportrnissued this morning by the Census Bureau and the Department of Housing andrnUrban Development, sales rose on both a monthly and an annual basis in all fourrnregions.  The monthly and yearlyrnincreases were 27.6 percent and 54.2 percent in the Northeast; 11.1 percent andrn13.6 percent in the Midwest; 3.2 percent and 16.6 percent in the South and 45.3rnpercent and 60.3 percent in the West. </p

The median sales price of new housesrnsold in January was $226,400 compared to $221.700 a year earlier.  The average price was $286,300, up fromrn$265,700 in January 2012. </p

At the end of the reporting period therernwere 150,000 new homes for sale.  Thisrnrepresents a supply of 4.1 months at the current rate of sales.  In January 2012 there were 149,000 new homesrnon the market, a 5.3 month supply.  Therernwere 31,000 new homes sold in January, only 12,000 of which wererncompleted.  The median time on the marketrnfor homes sold in January was 4.7 months.</p

JohnrnTashjian, Principal, Centurion Real Estate Partners in NYC said of the report, “January’srnnew home sales data is continued evidence that market is on a positive trajectory.rn While we believe that we are still in the second inning of a nine inningrngame, increased new home sales are a strong indicator of increasing consumerrnconfidence in the overall US housing market.  As interest rates remain atrnall-time low levels and access to capital becomes more readily available to thernhomebuyer, we will expect to see new home sales continue to increase.  Asrnhomebuyers absorb existing inventory, we expect to see a resurgence of newrnconstructions starts which will give the economy a much-needed shot in thernarm.”</p

New Home Sales</p

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