Friday, April 23, 2010

Caution on the Climb in New Home Sales

Sales of new homes surged 27% in March to a seasonally adjusted annual rate of 411,000. It was the largest percentage gain in sales since April 1963, but this follows a record low in February.

The February low was a result of extremely bad weather through out most of the country. This likely resulted in many February sales being delayed and transferred into March. Thus, the March numbers are almost like a two month set of data, or certainly a month plus 25%, which is roughly what the home sales gain amounted to.

The summer months are the true fully active homes sale months. Winter months can be very distorted, as they appear to be this year.

1 comment:

  1. a lot of people are rushing in to claim the 8K first time home buyers credit, which expires on apr. 30th.

    Hard to imagine they will end that credit, especially with elections right around the corner.