On Target

The Fulton Research Blog

New Home Sales at Record Lows

The Associated Press is reporting that new home sales for the month of January are at record lows.  This information is consistent with the local resale market data as reported in the Fulton Research Residential Market Trends report.   Can we blame this on: the weather?  Seasonality?  Or just a jittery consumer?  I sense its the latter and that $6,5oo to $8,000 many not be enough for a household to jump into a home purchase.   Jobs, jobs, and more jobs are what’s needed to spur this economy.

However, the Conference Board reports that 0.7 percent of households plan to move and buy a new home in the next six months.  This marks a 700 percent imrovement from February 2009 when only 0.1 percent were in the market for a new home and is slightly higher than the previous 12-month average of 0.4 percent.   This positive indicator suggests the housing industry may see strong activity in the spring months.

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