The Housing Bubble?
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.