US New Home Sales Hit Fastest Pace Since 2008
Sales of new homes increased 9.6% last month
By Newser Editors and Wire Services
Posted Feb 26, 2014 10:18 AM CST
In this Thursday, Jan. 9. 2014, photo, a sold sale sign hangs in front of a house in Mount Lebanon, Pa. The Commerce Department releases new home sales for January on Wednesday, Feb. 26, 2014.    (Gene J. Puskar)

(Newser) – US sales of new homes rebounded in January to the fastest pace in more than five years, offering hopes that housing could be regaining momentum after a slowdown last year caused by rising interest rates. The Commerce Department says sales of new homes increased 9.6% in January to a seasonally adjusted annual rate of 468,000. That was the fastest pace since July 2008.

It came as a surprise to economists who had been forecasting a sales drop in January, in part because of a belief that activity would be held back by bad winter storms in many parts of the country. Sales had fallen 3.8% in December and 1.8% in November, leading to worries that the housing recovery could be losing momentum.

Copyright 2016 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
US New Home Sales Hit Fastest Pace Since 2008 is...
0%
19%
6%
66%
0%
9%
Show results without voting
You Might Like
Comments
Showing 3 of 11 comments
energylifedesign
Feb 27, 2014 5:11 PM CST
I had to buy in Oakland because it's cheaper than renting in San Francisco. $3,000 for a one bedroom? F that now I have a $2600 mortgage for a 3 bedroom 2 bath with a huge yard.
Box1Car
Feb 27, 2014 12:50 AM CST
Overly optimistic report- Home prices still have to fall somewhat to balance out with the lower salary level of a country where wages are being cut to reflect a service economy
tran_tor
Feb 26, 2014 12:24 PM CST
New home sales in Jan 14: +41k http://www.mortgagenewsdaily.com/data/home-sales-new.aspx Existing home sales in Jan 14: -250k http://www.realtor.org/news-releases/2014/02/existing-home-sales-drop-in-january-while-prices-continue-to-grow Total Sales: - 209k for Jan 2014 It seems like some reporters are playing on their "Sit and Spins" today.