Purchases of New Homes in U.S. Hold Near Six-Year High
Source: Bloomberg
by Bloomberg News
10:00 AM EST February 25, 2015
(Bloomberg) -- New-home sales in January held close to the fastest pace in more than six years, consistent with slow and steady progress that’s been the hallmark of the U.S. housing market since early 2012.
Americans purchased 481,000 properties at an annualized rate last month, little changed from the 482,000 pace in December that was the strongest since June 2008, Commerce Department data showed Wednesday in Washington. Since a lull in July, sales of new homes have climbed 21 percent.
Employment opportunities, historically low mortgage rates and an increase in household formation are underpinning demand for homes as rents rise. Without easier financing terms and bigger wage gains to encourage more first-time buyers to take the plunge, housing may be hard-pressed to make a bigger contribution to economic growth.
The market “continues to move slowly forward, but at a modest pace,” said Gregory Daco, lead U.S. economist at Oxford Economics USA Inc. in New York, who projected home sales at a 480,000 rate. “We’re expecting the different drivers of the housing sector to get in place. That’s an environment of low rates, reduced home price inflation, accelerating wage growth and rising or strong confidence.”
Read more: http://www.bloomberg.com/news/articles/2015-02-25/new-homes-in-u-s-sold-at-faster-pace-than-forecast-in-january
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