December 4, 2013
Statement From LIA Chief Economist John Rizzo on New Home Sales
By: Dr. John A. Rizzo
"New home sales increased in October 2013 by 25.4% from September, to a seasonally adjusted annual rate of 444,000. This is the strongest monthly growth rate since May of 1980. The increase follows a 6.6% decline in September and sluggish sales in the summer, possibly reflecting the rise in mortgage rates. Year-over-year sales were up by 21.6% in October 2013. However, sales remain well below the 700,000 level considered to indicate a healthy market. The market appears to be recovering, albeit at an uneven pace. This month's news further suggests that buyers may be shrugging of the rise in mortgage rates, which remain near historical lows."