Homebuilders cheer big new home sales number

|By:, SA News Editor

Brutal winter weather has been the excuse for a long string of weak economic stats this year, but not January New Home Sales, which surged 9.6% from December to a seasonally adjusted annualized pace of 468K - a 5-year high. Expectations were for a drop to 400K. December sales were revised higher from 414K to 427K.

The median sales price rose 3.4% Y/Y to $260,100.

The Northeast led the way with a 73.7 jump. Sales climbed 11% in the West, and 10.4% in the South. In the MidWest, they dropped 17.2%.

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The homebuilders cheer. ETFs: XHB +1.9%, ITB +2.2%. Individual names: TOL +1.8%, HOV +2%, RYL +2.9%, KBH +2.5%, LEN +2.7%, PHM +2.3%.