New Home Sales Pick Up Speed
Posted at 2:30 p.m. on Jan. 25
Bill McBride: “2012 annual sales were at the expected level of 367 thousand (before further revisions). This was an increase of 19.9% from 2011… For 2013, estimates are sales will increase to around 450 to 460 thousand, or another 22% to 25% on an annual basis… My guess is sales will rise to around 800 thousand per year in a few years.”
“Following the housing bubble and bust, the ‘distressing gap’ appeared mostly because of distressed sales. The flood of distressed sales kept existing home sales elevated, and depressed new home sales since builders weren’t able to compete with the low prices of all the foreclosed properties… I do expect this gap to close – mostly from an increase in new home sales.”
