Housing Update: American New Home Sales


One of the first dominoes in the stability of the economy is located in a nation's real estate market and prices, in particular, who can and is paying for a brand new house? Generally, we get can get a good sense of the economy's health by examining the data on monthly new home sales. In recent days, we learned what these numbers look like for first month of the year.

For the month of January, sales of new single-family homes in the United States went up 3.7% to a seasonally adjusted annual rate of 555,000 units. It follows a downwardly revised 535,000 in the previous month, but lower than market expectations of 570,000.

Sales rose in the Northeast (15.8% to 44,000), the Midwest (14.8% to 70,000) and the South (4.3% to 290,000) but fell 4.4% in the West (to 151,000). The median sales price of new houses sold was $312,900 down from $316,200 in the previous month but up from $291,100 a year earlier. The average sales price was down to $360,900 from $378,900 in December and $365,600 a year earlier.

The stock of new houses for sale increased 3.5% to 265,000. This represents a supply of 5.7 months at the current sales rate.

Year-over-year, new home sales rose 5.5%.

The chart below shows the maximum amount of data for all new home sales in the United States. Note how we are still struggling to get off of the lows from 2007-2008. Ultimately, this is a sign that the economy is still nowhere near at the level in should be for economic strength.

Featured Posts
Search By Tags
No tags yet.

© 2018 by Jennifer N. Coombs and GradMoney. Proudly created with Wix.com

 

All rights reserved. Use of this Site constitutes acceptance of our terms and conditions and privacy policy.

 

Restrictions: The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of GradMoney or Jennifer N. Coombs.

 

Disclaimer: All data and information provided on this site is strictly the author’s opinion and does not constitute any financial, legal or other type of advice. GradMoney, nor Jennifer N. Coombs, makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses or damages arising from its display or use. We also do not make any personal investments on behalf of readers, nor do we offer specific trading recommendations to readers. GradMoney is not a licensed broker dealer. All investment actions as a result of GradMoney’s articles are to be made at the discretion of the individual investor. All investments contain risks; GradMoney assumes no liability for any loss of income or principal.

 

All questions or inquiries my be directed to the attention of Jennifer N. Coombs.