Month on month US new home sales jump by 15.6% in January

26 February 2013 17:39  [Source: ICIS news]

HOUSTON (ICIS)--US sales of new single-family homes rose by about 15.6% in January to 437,000 from 378,000 in December, the Commerce Department said on Tuesday, with the supply of homes on the market falling to its lowest number since March 2005.

Year on year, January 2013’s sales were about 28.9% higher than 339,000 in the same month last year, the department said in its monthly residential sales report.

The median sales price of new homes sold in January 2013 was $226,400, with the average sale price at $286,300, the department said. A 4.1-month supply of homes – 150,000 – was available for sale at the end of the month.

"The surge in demand for new homes this January is an excellent sign that the housing recovery is gaining steam and helping put more people back to work," said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "While we can't expect to see double-digit sales growth every month, consumers are definitely coming off the fence as prices start to rise, and builders in some cases are having a tough time keeping up. Challenges related to credit availability, poor appraisals, dwindling lot supplies, spot shortages of skilled labor and rising materials costs are all weighing on the recovery process."

Housing construction is a key downstream consumer sector for the chemicals industry, driving demand for a wide variety of chemicals, resins and derivative products such as plastic pipe, insulation, paints and coatings, adhesives and synthetic fibres, among many others.

The American Chemistry Council (ACC) estimates that each new home built represents some $15,000 (€11,400) worth of chemicals and derivatives used in the structure or in production of component materials.

While the construction of new single-family homes is the principal consumer sector for chemicals and resins, improving sales of existing homes helps drive demand for new housing by taking previously owned residences off the market.

($1 = €0.76)

By: Jeremy Pafford
+1 713 525 2653

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