US New Home Sales Fall 7.6%

Sales of new homes fell by 7.6 percent in December – a somewhat unexpected result in a year that proved to be the worst on record. December’s sales fell to a seasonally adjusted annual rate of 342,000 from an upwardly revised November pace of 370,000.

While some are predicting a recovery this year in the housing sector, others feel that the “shadow inventory” – that is, the large number of repossessed properties held by the banks and expected to find their way to the market this year – will quickly overwhelm demand, leading to a pullback in house prices.

Source: NY Times

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.