The inventory of new homes on the market hit a new low in January, sinking to 151,000 units, equivalent to a 5.6 month supply, while sales of newly-built single-family homes in January declined by .09 percent from Dec. 2011. According to data from the U.S. Commerce Dept. and HUD, the National Association of Home Builders (NAHB) states the seasonally-adjusted rate hit 321,000 units in Jan. Chairman of the NAHB Barry Rutenberg says outside of Dec. 2011, this is the best sales pace since April 2010 when the tax credit was available to home buyers. NAHB Chief Economist David Crowe, noting new home sales climbed 3.5 percent Jan. 2011 to Jan. 2012, says, “This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth. But the challenges posed by tight credit conditions and appraisal issues continue to slow that process.”
