Global| Jan 27 2016U.S. New Home Sales Jump; Prices Ease
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of new single-family homes strengthened 10.8% during December to 544,000 from 491,000 in November, revised from 490,000. The increase was helped by new closing procedures which shifted sales out of November. The gain left sales [...]
Sales of new single-family homes strengthened 10.8% during December to 544,000 from 491,000 in November, revised from 490,000. The increase was helped by new closing procedures which shifted sales out of November. The gain left sales 9.9% higher than December 2014, and up 14.6% for the full year. Sales of 505,000 had been expected in the Action Economics Forecast Survey.
The median price of a new home decreased 2.7% to $288,900 versus November and fell 4.3% y/y. During all of last year, prices averaged a 3.8% increase. The average sales price declined 4.9% m/m to $346,400, off 7.3% y/y.
Home sales in the Midwest increased 31.6% (38.9% y/y) to 75,000, the highest level since April 2008. Sales in the West rose 21.0% (21.9% y/y) to 167,000, an eight-year high. In the Northeast, sales gained 20.8% (-6.5% y/y) and made up most of the prior month's decline. Sales in the South improved 0.4%, unchanged y/y and over the last two months.
The inventory of unsold homes increased 11.8% y/y and there was a 5.2 months supply at the current sales rate. That figure was up from 4.0 months in January 2013. The number of months a new home was on the market remained near the record low of 3.0 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) | Dec | Nov | Oct | Y/Y %, SA | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 544 | 491 | 482 | 9.9 | 501 | 437 | 430 |
| Northeast | 29 | 24 | 34 | -6.5 | 24 | 28 | 31 |
| Midwest | 75 | 57 | 59 | 38.9 | 75 | 58 | 61 |
| South | 273 | 272 | 273 | 0.0 | 285 | 244 | 233 |
| West | 167 | 138 | 116 | 21.9 | 167 | 110 | 106 |
| Median Price (NSA, $) | 288,900 | 298,000 | 296,600 | -4.3 | 294,575 | 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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