January New Homes Sales: Inventories Rise

CNN Money reports:

The report showed there was a 5.2 month supply of new homes on the market in January at the current pace of sales, as the number of new homes available to be sold rose to 528,000. That's up 2.5 percent from December and up 20 percent from the number of homes available in January 2005.

The report marked the first time the supply of new homes crossed the five-month mark since November 1996, according to historical data from the bureau. The market had an average of a 4.5 month supply of home on the market throughout 2005.

Read about the cancel orders .Markets rarely turn on a dime,they go sideways at an extreme.If this the extreme,only time will tell.