The Commerce Department reported today that new home sales were up 16% last month to a seasonally adjusted rate of 437,000. This is higher than December 2012’s upwardly revised figure of 378,000 and also marks the highest level in four and a half years and the largest percentage increase in almost 20 years.
However, housing starts fell 8.5% in January to a seasonally adjusted annual rate of 890,000, according to Commerce. There were 973,000 in December 2012, which was the best month for new-home starts since June 2008. But while Commerce said the number of new building permits increased 1.8% last month from 909,000 in December 2012 to 925,000 in January and the pace of construction of single-family homes rose slightly last month to 0.8%, the National Association of Home Builders (NAHB) recently reported that builder confidence on the NAHB/Wells Fargo Housing Market Index dropped one point this month to 46, which is considered a poor outlook. An index where the number is over 50 indicates a positive outlook on single-family home sales by home builders.
“The spike in new home purchases have been fueled by consumers taking advantage of record-low mortgage rates, but this buying frenzy and the drop in new homes being built have resulted in a shrinking inventory and higher home sale prices,” Mr. Moshe said. “Homebuilders are down on the economy right now, but once it picks up and the weather warms up, they will begin hiring again.”
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Founded in 2006, Charles Rutenberg Realty of New York is one of the nation’s fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island,Queens, Westchester, the Boroughs and Manhattan. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory,listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients’ financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.