March 14, 2009

New Home Sales Sink Again

Sales of newly constructed homes fell 10% in January, sinking to the lowest level on record.

The U.S. Census Bureau reported that new home sales fell to a seasonally adjusted annual rate of 309,000 in January from a revised 344,000 in December. It was the lowest level since the Census Bureau began keeping records in 1963. Economists were expecting a sales rate of 324,000.

One bright spot: the number of homes for sale at the end of January was 340,000, down from 357,000 at the end of December.

Some economists believe the prospect of the new home market returning to equilibrium by summer, the existing home market may be able to see improvement in the months thereafter.

What do you think? Will this economy get back into a positive mode any time soon? Or will this be a long drawn out process, lasting a year or more? Click the comment link below and tell us what you think.

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