- Kent Hoover
- Washington Bureau Chief
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Sales of new homes fell by 7 percent in December, a larger than expected decline.
But before you get too worried about the state of the housing market, consider this: Despite last month's drop, new home sales jumped 16.4 percent for 2013 as a whole,according to the Census Bureau. The 428,000 new homes sold last year were the highest total since 2008. Last year also was the best year for existing home sales in five years.
December's seasonally adjusted rate of 414,000 was down partly because of the weather. December always is a tough month for home sales in the North, and frigid temperatures last month kept more buyers away than usual. In the Northeast, new home sales fell by more than 36 percent compared with November.
Home builders still think 2014 will be a good year.
"Consumers are getting used to more realistic mortgage rates, which still remain favorable on a historical basis," said David Crowe, chief economist for the National Association of Home Builders. "As household formations and pent-up demand continue to emerge, we anticipate that 2014 will be a strong year for housing."
The biggest constraints facing builders are "tight credit conditions for home buyers, and a limited supply of labor and buildable lots," said NAHB Chairman Rick Judson, owner of Evergreen Development Group in Charlotte, N.C.
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