martes, 28 de enero de 2014

martes, enero 28, 2014

January 27, 2014, 12:31 PM ET

Vital Signs: Inventory of New Homes Remain Low

By Kathleen Madigan



New-home sales ended 2013 with a whimper, but that doesn’t mean the housing industry will be hurting in 2014.

Sales of new homes unexpectedly fell 7% in December, to an annual rate of just 414,000. But bad weather may have kept some potential buyers away from open houses. If so, sales should pop once the weather moderates.

What’s important to the outlook for residential construction is the new-home market is in better balance than it was during the bust. Demand has held steady and builders are no longer carrying a large supply of houses for sale. 

The inventory of new homes for sale spiked over the summer when a jump in mortgage rates made potential buyers skittish. But since then, supply has come back down to manageable levels. Even at December’s reduced sales pace, the inventory of homes for sale would last only 5 months.

The low supply means much of the demand for new homes in 2014 will have to be satisfied by new construction, not what’s already on the market. That’s why home builders are optimistic they will stay busy in 2014.


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