U.S. Housing Market Sales of New Homes Dips by 2.2%
Housing-Market / US Housing Jan 27, 2012 - 03:00 AM GMTBy: Asha_Bangalore
Sales of new single-family homes fell 2.2% to an annual rate of 307,000 in December, putting the annual average at 303,000 units. The tally of sales of new single-family homes in 2011 is the lowest on record (see Chart 1).
On a quarterly basis, sales of new homes (see Chart 2) have been nearly flat for 2 years.
The median price of a new single-family dropped to $210, 300, down sharply from a year ago. The inventory of unsold single-family homes at a 6.1-month supply mark is close to the historical average of 6.3-month supply. The absence of robust hiring and strict mortgage loan underwriting keep homes out of the reach of potential buyers. The record low reading of the number of houses for sale bodes positively for future construction (see Chart 3).
Asha Bangalore — Senior Vice President and Economist
http://www.northerntrust.com
Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.
Copyright © 2012 Asha Bangalore
The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.
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