Global| Jan 27 2015U.S. New Home Sales Increase To 2008 High
by:Tom Moeller
|in:Economy in Brief
Summary
New home sales during December increased 11.6% to 481,000 (AR) from 431,000 in November, initially reported as 438,000. The latest figure was the highest since June 2008 and pulled the average sales volume for last year to 437,000, [...]
New home sales during December increased 11.6% to 481,000 (AR) from 431,000 in November, initially reported as 438,000. The latest figure was the highest since June 2008 and pulled the average sales volume for last year to 437,000, also the highest since 2008. The latest figure surpassed expectations for 450,000 sales in the Action Economics Forecast Survey. These volume numbers are quoted at seasonally adjusted annual rates.
The median price for a new home improved 2.2% (8.2% y/y) to a record high of $298,100 from $291,600, revised from $280,900. The average price of a new home gained 9.6% to $377,800 (17.6% y/y) from $344,600 in November, revised from $321,800.
Higher sales in the Northeast pulled last month's total higher with a 53.6% jump to a recovery high of 43,000 (72.0% y/y). Sales in the South also increased 17.7% to 253,000 (0.8% y/y) which reversed the November decline. Home sales in the West improved 3.1% to 131,000 (23.6% y/y), the highest level since February 2013. Lower sales in the Midwest offset these gains with an 11.5% decline to 54,000 (-10.0% y/y), the second straight month of decline.
The inventory of unsold homes increased 2.3% to 219,000 (17.1% y/y), the highest level since June 2010 and up by nearly half from the 2012 low. The months' sales supply of new homes fell m/m to 5.5 months versus last year's low of 3.9 months. The length of time to sell a new home was essentially stable m/m at 3.1 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 | Dec | Nov | Oct | Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total SAAR, 000s | 481 | 431 | 462 | 8.8 | 437 | 430 | 368 |
| Northeast | 43 | 28 | 27 | 72.0 | 29 | 31 | 29 |
| Midwest | 54 | 61 | 65 | -10.0 | 59 | 61 | 47 |
| South | 253 | 215 | 254 | 0.8 | 241 | 233 | 195 |
| West | 131 | 127 | 116 | 23.6 | 110 | 106 | 97 |
| Median Price (NSA, $) | 298,100 | 291,600 | 296,700 | 8.2 | 282,300 | 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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