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Economy in Brief

U.S. New Home Sales and Prices Rise
by Tom Moeller  July 24, 2019

New home sales rebounded 7.0% (4.5% y/y) during June to 646,000 after falling in May to 604,000, revised down from 626,000. Sales in April and March also were revised lower. Sales of 650,000 had been expected in the Action Economics Forecast Survey. New home sales remained 16.0% higher than the recent low in October. These sales transactions are recorded when sales contracts are signed or deposits are made.

The median price of a new home increased 2.3% to $310,400 last month, but was roughly unchanged y/y. The rise reversed part of the prior month's decline to $303,500. Prices remained 9.6% below the record high of $343,400 in November 2017. The average price of a new home eased 0.7% (-0.4% y/y) to $368,600.

Sales were mixed m/m amongst the regions of the country. New home sales in the West rebounded by one-half m/m to 185,000 (19.4% y/y) and made up most of the prior month's decline. Home sales in the South were little changed in June (9.5% y/y) following a 7.0% May increase. Declining by roughly one-quarter m/m to 56,000 (-17.6% y/y) were new home sales in the Midwest. They have trended lower since March and now stand at the lowest sales level since September 2015. Sales in the Northeast eased slightly to 23,000 and were off by one-half y/y.

The months' supply of homes on the market slipped to 6.3 last month and remained well below the 7.4 months' supply reached in December. The median number of months a new home was on the market after its completion eased to 3.4 months but was higher than the low of 2.7 month low in October.

The data in this report are available in Haver's USECON database. The consensus expectation figure from Action Economics is available in the AS1REPNA database.

U.S. New Single-Family Home Sales (SAAR, 000s) Jun May Apr Jun Y/Y % 2018 2017 2016
Total 646 604 658 4.5 617 613 561
  Northeast 23 24 32 -50.0 32 38 34
  Midwest 56 76 70 -17.6 76 70 68
  South 382 381 356 9.5 349 338 318
  West  185 123 200 19.4 162 162 143
Median Price (NSA, $) 310,400 303,500 337,200 -0.0 323,125 321,633 306,500
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