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US new-home sales in 2012 reach three-year high | US new-home sales in 2012 reach three-year high |
(35 minutes later) | |
US new-home sales slowed in December, but that did not take the shine off the market seeing its best year since 2009. | US new-home sales slowed in December, but that did not take the shine off the market seeing its best year since 2009. |
The Commerce Department said new-home sales fell 7.3% month-on-month to a seasonally-adjusted annual rate of 369,000 units. | The Commerce Department said new-home sales fell 7.3% month-on-month to a seasonally-adjusted annual rate of 369,000 units. |
For the year, sales were up almost 20% to an annual rate of 367,000, but below the 700,000 level economists see as healthy for the housing industry. | For the year, sales were up almost 20% to an annual rate of 367,000, but below the 700,000 level economists see as healthy for the housing industry. |
Sales of previously-owned homes rose to 4.65 million, the most in five years. | Sales of previously-owned homes rose to 4.65 million, the most in five years. |
Last year's rise came on the back of more stable employment data and record-low mortgages. The Commerce Department said that the average price of newly-built homes rose slightly, which may have contributed to December's fall. | Last year's rise came on the back of more stable employment data and record-low mortgages. The Commerce Department said that the average price of newly-built homes rose slightly, which may have contributed to December's fall. |
"This [fall] should prove to be a temporary blip as the US housing market continues its gradual recovery," said Andrew Grantham, an economist at CIBC World Markets. | "This [fall] should prove to be a temporary blip as the US housing market continues its gradual recovery," said Andrew Grantham, an economist at CIBC World Markets. |
The US National Association of Homebuilders estimates that each new house built creates an average of three jobs for a year and generates about $90,000 (£57,000) in tax revenue. | The US National Association of Homebuilders estimates that each new house built creates an average of three jobs for a year and generates about $90,000 (£57,000) in tax revenue. |
It is roughly five years since the US housing market bubble started to deflate, helping to tip the economy into recession and exposing the extent of the sub-prime mortgage scandal in which many people took out loans that they had little prospect of repaying. | |
Strong employment levels and confidence about job prospects are crucial for a healthy housing market, economists say. The US unemployment rate, at 7.8%, is forecast to improve during 2013, but not dramatically. And GDP growth is expected to remain in low single digits. |
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