Bad weather isn’t to blame for icy housing figures: economists

New York /
Feb.February 23, 2014 03:00 PM

 January saw harsh snowstorms, extreme temperatures across the U.S. and a drop in sales of previously owned homes to the lowest level in more than a year. Some have speculated that the bad weather was to blame, but economists say that it was only partially guilty.

Existing home purchases decreased 5.1 percent to a 4.62 million annual rate last month, the fewest since July 2012, according to the National Association of Realtors. 

“The weather played some role, but just as much of a role was played by lower inventories, higher mortgage rates, slightly higher prices and tighter credit,” Robert Rosener, an economist at Credit Agricole CIB in New York, who correctly projected the drop in sales, told Bloomberg News. “We’re on a positive trajectory, and when the spring comes we should see a bounce back.”

Bloomberg News surveyed 79 economists and the median forecast projected that sales would drop to a 4.67 million rate, with estimates ranging from a 4.5 million pace to 4.9 million. [Bloomberg News]Christopher Cameron


Related Articles

arrow_forward_ios
(Getty)
Weekly home listings hit record low
Weekly home listings hit record low
(iStock/Illustration by Kevin Rebong for The Real Deal)
Watchdog org: Put home-sale commissions in buyers’ hands
Watchdog org: Put home-sale commissions in buyers’ hands
Corcoran’s Julian Johnston, Luxe Living Realty’s Dora Puig, One Sotheby’s’ Jeff Miller, Douglas Elliman’s Dina Goldentayer and Douglas Elliman’s Oren Alexander
WATCH: Top luxury brokers go head to head at TRD’s Miami event
WATCH: Top luxury brokers go head to head at TRD’s Miami event
The report shows the small uptick among single-family homes, townhomes, condominiums and co-ops. (iStock)
After rebound, existing home sales growth slows in October
After rebound, existing home sales growth slows in October
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
Long Island home prices reach 20-year high
Long Island home prices reach 20-year high
Long Island home prices reach 20-year high
From left: Francisco Llado, Gil Dezer, Amir Korangy, Paulo Bacchi, Edgardo Defortuna, Jay Parker, Daniel de la Vega (Artefacto, Getty)
Is Miami’s residential architecture overplayed? No way!: TRD panel at Artefacto
Is Miami’s residential architecture overplayed? No way!: TRD panel at Artefacto
Existing home sales were on the upswing in September following a slight dip in August. (iStock)
Existing home sales rebound in September, rising by 7%
Existing home sales rebound in September, rising by 7%
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...