U.S. Outlook: New home sales buck slowdown trend
Better than expected January new home sales are a good sign for a continuing expansion of the housing market this year, but we expect slower growth in home building soon.
- Housing market indicators point to homebuilding slowdown.
- Tight inventories should keep home prices rising and builder margins high.
- Winter building permit decline is longest in 5 years.
- Less home building could help support household wealth and consumer spending in 2014.