The headlines will read that new home sales fell in January, as they have four of the past six months. The bubble starting to burst?
Not so fast:
The average price of a home increased to $291,600, up from a revised $281,700 in December. The median price rose to $238,100 from a revised $229,000.
There were an estimated 528,000 homes for sale at the end of January, which was a record. That represented a 5.2 months’ supply at the current sales rate, the highest pace since 5.2 in November 1996. In December, an estimated 515,000 were for sale, a 4.8 months’ inventory. An estimated 93,000 homes were actually sold last month, up from 89,000 in December, based on figures not seasonally adjusted.