The US housing market’s disappointing end to 2013
Who wants to buy a new house when the weather is terrible? According to new data released last week, new home sales were down by 7% in December — partially due to bad weather. However, resales of existing homes were up by 1%, according to the National Association of Realtors. Total sales for 2013 were the strongest they have been since 2006, according to Reuters. Here’s an overall view of the housing market:
The dip in new home sales was likely affected by frigid temperatures in the Northeast, according to Reuters. Here’s what just new home sales looks like:
“For the year as a whole, it’s a good recovery,” National Association of Realtors’ economist Lawrence Yun told Reuters. “We lost some momentum toward the end of 2013.” Reuters has more details on the new home sales this morning:
The second straight month of declines in sales was likely payback after October’s outsized 14.9 percent increase and may have reflected some drag from cold weather that blanketed most parts of the country last month.
Sales in the Northeast, which was hard hit by frigid temperatures, tumbled 36.4 percent to their slowest pace since June 2012. Home sales are traditionally weak during the winter, and last month’s cold snap could have exaggerated the magnitude of the slowdown.
New home sales were up 4.5 percent, compared with December 2012. For all of 2013, a total of 428,000 single family homes were sold. That was the most since 2008 and represented a 16.4 percent increase from the 2012.