WASHINGTON — New- home sales declined in December, capping the industry’s worst year on record and fueling concern that the housing turnaround could falter.
Last month’s results were the weakest since March and were only 4 percent above the bottom last January. The data showed the housing recovery remains limp despite newly expanded tax incentives to spur sales. Many in the industry, however, expect sales to pick up as the April 30 deadline for the tax credit nears.
Some builders are nervous.
“If we don’t see better data in March and April, we’re going to have a big problem,” said John Wieland, chief executive of Atlanta-based John Wieland Homes and Neighborhoods.
Traffic from potential buyers has picked up in recent weeks, he said, but will increase even more if consumers become more confident in the economy’s recovery.
“People are looking ahead and saying, ‘This recession has gone on a long time, and I’m going ahead with my life,’ ” Wieland said.
Nationwide, new-home sales for December fell 7.6 percent to a seasonally adjusted annual rate of 342,000 from an upwardly revised November pace of 370,000, the Commerce Department said Wednesday. December’s sales were nearly 9 percent below those of December 2008.
The median sales price of $221,300 in December was down nearly 4 percent from $229,600 a year earlier but up about 5 percent from November’s median of $210,300.
New-home sales varied widely across the country. Sales plummeted 41 percent in the Midwest but skyrocketed 43 percent in the Northeast.
