They expect the Census Bureau report slated to be released Monday morning will show December new home sales to come in at a 463,000 seasonally adjusted annual rate, compared to a 464,000 rate in November.
The WFS economists remain optimistic about the outlook for housing and they are forecasting that new home sales will hit 520,000 in 2014, up 20% from last year.
WFS senior economist Anika Khan noted that builders remain optimistic. She noted, however, that builders are catering more to move-up buyers and building fewer homes priced below $150,000.
I am most concerned about first-time homebuyers, she said. Even when it comes to existing home sales, the percentage of first-time buyers is low.
She blames this on tight credit conditions. It continues to be very difficult for these folks to get into the housing market, Khan said.