A Bad Day for New Home Sales

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January’s record low new home sales data has made it fairly obvious the government’s extended/expanded home buyer tax credit has yet to have a significant impact on the sector. The pace of new home sales plummeted by 11.2% to a level of 309K in January. The months supply of new homes rose sharply reaching 9.1 months, versus 8.0 months in December. The median new home price in January fell to $203,500 from $215,600 . (See Charts)

New Home Sales vs. Months Supply