Global| Feb 24 2021U.S. New Home Sales Fall Sharply in February
by:Tom Moeller
|in:Economy in Brief
Summary
• Sales decline across the country. • Median house prices ease. Harsh winter weather throughout the country kept many potential home buyers indoors last month. Sales of new single-family homes declined 18.2% (+8.2% y/y) during [...]
• Sales decline across the country.
• Median house prices ease.
Harsh winter weather throughout the country kept many potential home buyers indoors last month. Sales of new single-family homes declined 18.2% (+8.2% y/y) during February to 775,000 units from 948,000 in January, revised from 923,000. Earlier figures also were revised. The Action Economics Forecast Survey expected 879,000 sales in February.
Sales fell throughout the country. Midwest sales dropped 37.5% (+4.9% y/y) to 85,000, the lowest level since last June. In the West, sales weakened 16.4% (-8.1% y/y) to 194,000, down from last October's high of 277.000. Sales in South were off 14.7% (+20.2% y/y) to 458,000. Falling by 11.6% both m/m and y/y were sales in the Northeast to 38,000, well below a June 2020 high of 52,000.
The median price of a new home fell 1.1% (+5.3% y/y) in February to $349,400. Working 1.4% higher (7.7% y/y) to $416,000 was the average price of a new home. These prices are not seasonally adjusted.
The supply of new homes for sale in February rose to 4.8 months, up from 3.5 months in October. The median number of months a new home stayed on the market after completion declined to 3.2, after surging to 4.5 months in both August and September of last year.
New home sales activity and prices 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) | Feb | Jan | Dec | Feb Y/Y % | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|
| Total | 775 | 948 | 919 | 8.2 | 823 | 685 | 614 |
| Northeast | 38 | 43 | 39 | -11.6 | 37 | 30 | 32 |
| Midwest | 85 | 136 | 121 | 4.9 | 94 | 72 | 75 |
| South | 458 | 537 | 534 | 20.2 | 472 | 400 | 347 |
| m West | 194 | 232 | 225 | -8.1 | 219 | 183 | 160 |
| Median Price (NSA, $) | 349,400 | 353,200 | 346,600 | 5.3 | 334,267 | 319,267 | 323,125 |
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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