New home sales drop 10.2%, hit record low

WASHINGTON – The sale of newly built, single-family homes in the United States fell 10.2 percent to a seasonally adjusted annual rate of 309,000 units in January, a new record low, the National Association of Home Builders reported last week.
Although the number of new homes on the market fell to 342,000 in January, the slow sales pace pegs that as a 13.3-month inventory.
In a statement, NAHB Chairman Joe Robson said many potential homebuyers were waiting in January to see whether President Obama would be able to pass an economic stimulus package and whether it would have any affects on home purchases.
“Clearly, the downward pressures that have been exerting themselves on the housing market remain in place, including the weakened economy, ongoing job losses and very low consumer confidence,” NAHB Chief Economist David Crowe added. “But as more homebuyers find out about the newly enhanced tax credit and other parts of the economic stimulus package start kicking in, we expect to see some firming effect on home sales. The hope is that a certain amount of pent-up demand will be released as those who were in a wait-and-see mode decide they now have the information they need to proceed.”
The National Association of Home Builders, a trade group founded in 1942, produces in-depth economic analyses of the home building industry based on private and government data. To learn more, visit www.nahb.org.