U.S. Jan. new home sales fall 9.2% to 1.106M
Monday, February 28, 2005 3:16:29 PM
forexstreet.com
WASHINGTON (AFX) - Sales of new U.S. homes fell about 9.2 percent to a seasonally adjusted annual rate of 1.106 million in January, the Commerce Department estimated Monday. Sales were down 4.2 percent year-over-year
December's sales were revised higher to 1.218 million from 1.098 million. Economists were expecting sales of about 1.13 million in January, according to a survey conducted by MarketWatch
The number of homes for sale increased about 3.5 percent to a record 438,000, a 4.7-month supply at the current sales pace. It's the largest inventory-to-sales ratio since June 2000
The median price of a new home fell 4.8 percent year-over-year to $199,400
Most economists expect housing to slow, but not collapse, as the Federal Reserve continues to raise short-term interest rates at a measured pace. Despite six increases in the federal funds rate during the past year, however, average mortgage rates have been steady
The regional picture was mixed in January suggesting that weather may have been a factor in sales. Sales fell in three of four regions, with declines of 40.3 percent in the Midwest, 17.1 percent in the Northeast and 3.3 percent in the South. Sales increased 5.6 percent in the West
The government cautions that its housing data are particularly prone to sampling and other statistical errors. It can take six months to establish a new trend in home sales. In January, the six-month average sales rate was 1.192 million, up from 1.190 million in December |
