Home sales probably fell in January, while orders for long-lasting goods climbed, a reminder that housing lags behind manufacturing as the U.S. recovery strengthens, economists said before reports this week.
Combined purchases of new and existing homes fell 2 percent to a 5.5 million annual pace, according to the median forecast of economists surveyed by Bloomberg News. Durable-goods bookings increased 3 percent last month, the survey showed.
Unemployment hovering near 9 percent means foreclosures may keep rising, adding to a glut of inventory that is depressing property values, hurting builders and homeowners. Growing exports, combined with increasing profits and tax incentives signed into law by President Barack Obama in December, will probably keep orders flowing to companies like Caterpillar Inc.
“Housing is basically flat on its back, and manufacturing is growing very fast, probably the biggest contrast in the economy,” said Nigel Gault, chief U.S. economist at IHS Global Insight Inc. in Lexington, Massachusetts. Home prices are still on the way down.”
Sales of existing homes fell 1.5 percent to a 5.2 million annual pace, economists surveyed by Bloomberg forecast the National Association of Realtors will report Feb. 23. Commerce Department figures the following day may show demand for new homes dropped 8.8 percent to a 300,000 rate, the survey showed. Purchases reached a record low 274,000 pace in August.
Combined purchases of new and existing homes fell 2 percent to a 5.5 million annual pace, according to the median forecast of economists surveyed by Bloomberg News. Durable-goods bookings increased 3 percent last month, the survey showed.
Unemployment hovering near 9 percent means foreclosures may keep rising, adding to a glut of inventory that is depressing property values, hurting builders and homeowners. Growing exports, combined with increasing profits and tax incentives signed into law by President Barack Obama in December, will probably keep orders flowing to companies like Caterpillar Inc.
“Housing is basically flat on its back, and manufacturing is growing very fast, probably the biggest contrast in the economy,” said Nigel Gault, chief U.S. economist at IHS Global Insight Inc. in Lexington, Massachusetts. Home prices are still on the way down.”
Sales of existing homes fell 1.5 percent to a 5.2 million annual pace, economists surveyed by Bloomberg forecast the National Association of Realtors will report Feb. 23. Commerce Department figures the following day may show demand for new homes dropped 8.8 percent to a 300,000 rate, the survey showed. Purchases reached a record low 274,000 pace in August.
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