New Home Sales Warm Up in February
Shaking off a weather-related downturn in January, sales of new single-family homes increased 9.4% in January to a seasonally adjusted annual rate of 1.226 million units, the U.S. Commerce Department reported last week.
“Builders expected single-family home sales to remain strong,” said NAHB President David Wilson. “In our regular monthly survey of single-family home builders, they indicated that they were solidly optimistic about the coming months, and the latest Commerce Department figures reinforce that optimism.”
“We expected a late-winter rebound,” said NAHB Chief Economist David Seiders. “Demand still outstrips supply in many areas, and buyer demand continues to be driven by favorable market fundamentals ― growing employment and household income, new household formations and historically low mortgage rates.”
“Even though mortgage rates have moved up in recent weeks, financing conditions remain quite favorable, and the drive toward homeownership remains strong,” Seiders added. “People want to live in their own homes, and they regard homeownership as a solid investment, as well,” Seiders added.
Home sales were up in every region of the country in February, climbing 20.3% in the Northeast, 9.9% in the Midwest, 9.0% in the South and 7.4% in the West.
The inventory of new homes for sale was 444,000, a 4.4 months’ supply at the February sales pace. “The inventory situation is very manageable,” Seiders noted. “It includes a large number of units permitted but not yet started, which is not a problem for builders.”
Register Today for the Spring Construction Forecast Conference
See what's on the horizon for the housing industry at NAHB's Spring Construction Forecast Conference
on May 5 in Washington, D.C. Get the latest forecasts on housing starts, project budgets and other economic bellwethers and developments in the housing industry from some of the country's premier economists and finance experts. To register or for more information, click here.
‘HousingEconomics Online’ Provides In-Depth Analysis of Housing Market
"HousingEconomics Online" is a new online publication from the NAHB Economics Group that provides the latest housing economic data, trends and key events shaping the economy. NAHB’s leading economists analyze and synthesize the housing and economic information to provide in-depth analysis of the niches and nuances of the home building market.
Available at BuilderBooks.com, "HousingEconomics Online" combines unique scientific research with practical applications providing insights that are original, useful and written in terms that builders, manufacturers and housing finance professionals can understand and apply to their own businesses.
This interactive Web site at the executive level provides critical data and information quickly, easily and frequently and includes the following features:
- Home Builders Forecast
- The Desktop Analyst
- Access to NAHB’s Staff of Economists
- Seiders' Report
- NAHB’s Economic & Housing Forecast
- Housing Activity
- Housing Policy Focus
- Multifamily Housing Quarterly
- State & Metro Focus
- Housing Market Statistics
For more details, go to www.housingeconomics.com.
Subscribe Your Employees to Nation’s Building News — Earn a Chance to Win Digital Camera
Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.