Global| Jun 23 2015U.S. New Home Sales Improve As Prices Decline
by:Tom Moeller
|in:Economy in Brief
Summary
New home sales during May gained 2.2% to 546,000 (AR) from 534,000 in April, initially reported as 517,000. It was the highest sales level since February 2008. The latest figure beat expectations for 520,000 sales in the Action [...]
New home sales during May gained 2.2% to 546,000 (AR) from 534,000 in April, initially reported as 517,000. It was the highest sales level since February 2008. The latest figure beat expectations for 520,000 sales in the Action Economics Forecast Survey. Sales are quoted at seasonally adjusted annual rates.
Home prices remained under pressure. The median price for a new home during May fell 2.9% (-1.0% y/y) to $282,800 from 291,100, revised from $297,300. The average price of a new home edged 0.9% higher to $337,000 (4.2% y/y) from $333,900, following several months of sharp decline.
Sales results varied around the country. Sales in the Northeast nearly doubled m/m to 30,000 but they were unchanged y/y. Home sales in the West improved 13.1% (27.3% y/y) to 138,000. To the downside, home sales in the Midwest declined 5.7% (-14.3% y/y) to 66,000 while sales in South fell 4.3% (+27.3% y/y) to 312,000.
The inventory of unsold homes was little-changed for the third month at 206,000 (6.2% y/y). The months' sales supply of new homes dipped m/m to 4.5 months, equaling the lowest level since mid-2013. The length of time to sell a new home eased to 3.9 months, down from 14.0 months at the end of 2009.
The data in this report are available in Haver's USECON database. The consensus expectation figure from the Action Economics survey is available in the AS1REPNA database.
| U.S. New Home Sales | May | Apr | Mar | May Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total SAAR, 000s | 546 | 534 | 494 | 18.6 | 439 | 429 | 369 |
| Northeast | 30 | 16 | 19 | 0.0 | 28 | 30 | 28 |
| Midwest | 66 | 70 | 57 | -14.3 | 60 | 62 | 48 |
| South | 312 | 326 | 283 | 27.3 | 244 | 232 | 194 |
| West | 138 | 122 | 135 | 27.3 | 108 | 106 | 97 |
| Median Price (NSA, $) | 282,800 | 291,100 | 287,900 | -1.0 | 283,233 | 265,092 | 242,108 |
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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