Global| Jun 23 2016U.S. New Home Sales and Prices Decline
by:Tom Moeller
|in:Economy in Brief
Summary
Strength in the housing market toned down during May. Sales of new single-family homes declined 6.0% to 551,000 (+8.7% y/y) following a 12.3% increase to 586,000, revised from 619,000. Sales of 563,000 had been expected in the Action [...]
Strength in the housing market toned down during May. Sales of new single-family homes declined 6.0% to 551,000 (+8.7% y/y) following a 12.3% increase to 586,000, revised from 619,000. Sales of 563,000 had been expected in the Action Economics Forecast Survey.
The median price of a new home declined 9.3% to $290,400 (1.0% y/y) versus the record of $320,200 in April, which was revised slightly downward. The average price of a new home declined 5.1% to $358,900 (+5.3% y/y).
The decline in new home sales was paced by a one-third m/m drop in the Northeast to 34,000 (30.8% y/y) which reversed the prior month's surge. Sales in the West fell 15.6% to 124,000 and also reversed the prior month's gain. In the South, sales eased 0.9% to 323,000 (+13.3% y/y) after a 9.4% increase. To the upside, sales in the Midwest increased 12.0% to 70,000 (16.7% y/y), the highest level in two years.
The months supply of homes at the current sales rate increased to 5.3 and recovered much of the prior month's decline. The median number of months a new home was on the market declined to 3.7 (NSA), and reversed increases in the prior two months.
The data in this report are available in Haver's USECON database. The consensus expectation figure from the Action Economics Forecast Survey is available in the AS1REPNA database.
| U.S. New Single-Family Home Sales (SAAR, 000s) | May | Apr | Mar | Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 551 | 586 | 522 | 8.7 | 503 | 440 | 430 |
| Northeast | 34 | 51 | 36 | 30.8 | 24 | 28 | 31 |
| Midwest | 70 | 62 | 65 | 16.7 | 61 | 58 | 61 |
| South | 323 | 326 | 298 | 13.3 | 287 | 244 | 233 |
| West | 124 | 147 | 123 | -8.8 | 131 | 110 | 106 |
| Median Price (NSA, $) | 290,400 | 320,200 | 298,200 | 1.0 | 297,258 | 283,775 | 265,092 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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