New-home sales up 16.4% in 2013 | January 31, 2014 | Pleasanton Weekly | |

Pleasanton Weekly

Real Estate - January 31, 2014

New-home sales up 16.4% in 2013

December sales fell 7% due to cold weather back east

by Jeb Bing

Sales of newly built, single-family homes fell 7% to a seasonally adjusted annual rate of 414,000 units in December but were up 16.4% across the country in 2013.

Newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau also reported that mortgage rates are still favorable despite some increases last year.

"December's decline in new-home sales follows elevated levels in the previous two months and means the fourth quarter was still much stronger than the third," said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "While we expect sales to gain strength in 2014, builders still face considerable constraints, including tight credit conditions for home buyers, and a limited supply of labor and buildable lots."

NAHB Chief Economist David Crowe agreed.

"Consumers are getting used to more realistic mortgage rates, which still remain favorable on a historical basis," he said. "As household formations and pent-up demand continue to emerge, we anticipate that 2014 will be a strong year for housing."

Regionally, new-home sales activity fell 36.4% in the weather-battered Northeast, 7.3% in the South and 8.8% in the West. The Midwest posted a gain of 17.6%.

The inventory of new homes fell to 171,000 units in February, which is a five-month supply at the current sales pace. Although this is an increase over the previous month, it is due to the slower sales pace in December.


There are no comments yet for this post

Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: *

Choose a category: *

Since this is the first comment on this story a new topic will also be started in Town Square! Please choose a category that best describes this story.

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields