Wednesday, April 25, 2012

Good News for Housing is Still a Long Way Off

Sales of new homes fell in March by the largest amount in more than a year, indicating that the U.S. housing market remains under strain despite some modest signs of improvement.

The Commerce Department said Tuesday that sales dropped 7.1 percent in March to a seasonally adjusted annual rate of 328,000 units. That followed a 7.3 percent increase in sales in February. This figure was revised up from an initial estimate that February sales had fallen 1.6 percent.

The weakness in March could reflect that a warmer-than-normal winter caused sales that normally occur at the start of the spring sales season in March to occur in February instead.

The median sales price was $234,500 in March, down 1 percent from the February price.
Sales of new homes stand at just about half the roughly 700,000-a-year pace that analysts consider evidence of a healthy market.

The supply of unsold new homes fell to just 144,000 in March -- the fewest on records dating to 1963. The supply has been falling over the past two years as builders have cut back on construction.

1 comment:

Feinmann said...

There is conflicting data because some reports have shown a small improvement. Either way, things are moving slowly. Until people get jobs and the economy improves, building projects will remain on the back burner.