New-Home Sales in U.S. Surge to Highest Level Since 2008
Source: Bloomberg
By Shobhana Chandra - Feb 26, 2013
Purchases of new homes in the U.S. jumped in January to the highest level since July 2008, showing the industry will keep adding to growth in the economy.
Sales surged 15.6 percent to a 437,000 annual pace, exceeding the highest forecast in a Bloomberg survey and following a 378,000 rate in the prior month, figures from the Commerce Department showed today in Washington. The median estimate of 72 economists surveyed called for a 380,000 rate. The monthly gain was the biggest since 1993.
Demand picked up in all four regions as buyers took advantage of mortgage rates near a record lows, helping to boost the outlook for companies from PulteGroup Inc. (PHM) to Mohawk Industries (MHK) Inc. A stronger job market and less competition from foreclosures would ensure a more pronounced rebound in the market that’s become a source of strength for the expansion.
“We expect the improvement in the new-home market will continue this year,” Michelle Meyer, a senior U.S. economist at Bank of America Corp. in New York, said before the report. Meyer was the best forecaster for new-home sales over the past two years, according to data compiled by Bloomberg.
Read more: http://www.bloomberg.com/news/2013-02-26/new-home-sales-in-u-s-surge-in-january-to-highest-since-2008.html
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