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Troubling Drop in New Home Sales/Prices; Volatile Markets but Rates Hold Ground

Troubling Drop in New Home Sales/Prices; Volatile Markets but Rates Hold Ground

A sharp drop A sharp drop in sales in the West brought about an overall decline in the national rate of new home sales in January. The U.S. Census Bureau and the Department of Housing and Urban Development reported that sales of newly constructed homes fell 9.2 percent from December and were 5.2 percent below sales in January 2015. In the West sales plunged 32.1 percent month-over-month and they were down by 24.1 percent from a year earlier. The report put the seasonally adjusted annual rate of sales in January at 494,000 units compared to 544,000 units in December and 521,000 in January 2015. December sales had jumped 10.8 percent from November and Bloomberg noted that new home sales regularly undergo wild swings because the samples are small. Econoday forecasters had predicted sales would
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