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Thinkpad (AXcess News) Washington - New home sales slowed in January, signaling an end to the US housing boom. The slow down in new home sales in January marked the second time in three months that new home buyers in the US were dwindling.
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Microsoft The US Commerce Department reported Monday that sales of new single-family homesfell by 5 percent to a seasonally adjusted annual rate of 1.233 million units last month.
January was generally a successful month for online sales, Christmas levels and higher than those seen in November. Return to work saw a spike in interest on January 4 and 5, with sales slowing again until a week later as shoppers made the most of falling prices in the sales on January 12. Coincidentally, this day was also the highest for online purchases in January 2004.
Laptop Computers In December, the US Commerce Department had reported that new home sales had climbed 3.8 percent, but in November, new home sales fell 7 percent.
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Laptop Computer Despite the fall in sales, the median price of a new home was up in January to $238,100, compared with $229,000 in December. January's increase in the median price of a new home was the highest since October, when the median price of a new home set a record $243,900.
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Desktop Computer Unusuallywarm weather had pushed up construction of new homes and apartments by 14.5 percent last month, the biggest increase in more than three decades. Economists assumed that new home sales figures would follow.
Notebooks But milder weather did not have the same impact in sales across the country except in the western region where salesrose 11.3 percent in January after a 6.3 percent gain in December.
Lenovo In other regions of the country, new home sales fell.
Hard Drive The biggest decline was a 14.9 percent decrease in sales in the Northeast, which followed an even bigger 23 percent plunge in sales in December. Sales in the Midwest were down 10.8 percent after having risen by 21.2 percent in December. Sales fell by 10.3 percent in the South in January following a 1.2 percent gain in December.
Travelstar According to the latest Freddie Mac survey, mortgage rates have been rising gradually for a number of months with the 30-year mortgage now at 6.26 percent. It is anticipated that the US Central Bank will once again raise short-term interest rates when the Fed meets again in March.
Rising interest rates and less spendable money will curb the appetite of new home buyers in the first half of this year, so analysts are expecting new home sales to continue slowing.
