Sales of New Homes in US Rose in December 2005

Sales of new homes rose 2.9 percent in December, a government report showed Friday, January 27, 2006.

The Census Bureau reported that the annual pace of new home sales increased to 1.27 million in December from 1.23 million in November, which was revised slightly lower. Economists surveyed by Briefing.com had forecast sales would slow to a 1.23 million annual rate.

While home sales gained ground in December, there are still signs suggesting a cool down in the real estate market. We are still going to see a gradual slowing in the housing market over the rest of this year and into 2007.

Much of the nation's economic growth has been tied to the housing boom, which has created jobs in construction as well as spurred purchases of big-ticket household items such as refrigerators and washing machines.