World Economic outlook US home sales outlook February 2012 : Despite the drop in new homes sales last month the supply of homes on the market fell to 5.6 months - the lowest since January 2006 - from 5.7 months in December.
A 6-month supply is generally considered an ideal level and the decline last month suggested the supply-demand situation in the new homes market was coming into better balance. The inventory of new homes on the market was the lowest on record.
The Thomson Reuters/University of Michigan's final index of consumer sentiment in February edged up to 75.3, the highest since February last year, from 75.0 in January.
The rise in confidence came even as Americans faced higher prices for gasoline. Prices have jumped 8.8 per cent since the start of this year, according to the Energy Information Agency, topping an average of $US3.65 a gallon in the week through Monday.
The median price for a new home rose 0.3 percent last month to $217,100, the highest since October. It was the second straight month of gains. Compared to January last year, however, the median price was down 9.6 percent.
Economists are optimistic the downward pressure on home prices is set to ease, encouraged by recent declines in the supply of unsold previously owned homes, which fell to a near 6-year low of 6.1 months in January.
Data this week showed home resales rose to a 1-1/2-year high last month, and confidence among homebuilders in February neared a five-year high. Still, both sales and home construction remain far below their 2005 levels.
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