Strong new-home sales in January have brought about optimism that the spring buying season will be steady, a report by the Commerce Department revealed at the end of February.
January saw a sales increase of new homes by 9.6 %, which in terms of the seasonally adjusted annual rate amounts to 468,000 sold units.
Such high rates were hardly anticipated due to continuous bad weather. Moreover, sales in December had fallen by 3.8 % and 1.8 % in November.
To economists, the rise signaled improved economy and an encouraging job growth rate. Such positive indicators led to predictions that in 2014, sales of both new and existing homes will the highest since July 2008.
“Despite higher mortgage rates, the fundamentals for new-home sales and residential construction are solid,” said Stuart Hoffman, chief economist at PNC Financial Services Group. “The economy is adding jobs and incomes are growing, making households more confident.”
Read the full story at The Washington Post.