Global| Feb 26 2020U.S. New Home Sales Jump to 2007 High; Prices Reach Record
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of new single-family homes increased 7.9% (18.6% y/y) during January to 764,000 units (SAAR), the highest level since July 2007. Sales increased from 708,000 in December, revised from 694,000. Figures for 2019 were revised. The [...]
Sales of new single-family homes increased 7.9% (18.6% y/y) during January to 764,000 units (SAAR), the highest level since July 2007. Sales increased from 708,000 in December, revised from 694,000. Figures for 2019 were revised. The Action Economics survey expected sales of 710,000.
The median price of a new home rose 7.4% (14.0% y/y) last month to a record $348,200. The average price of a new home also increased to a record of $402,300 (11.4% y/y). The home price figures are not seasonally adjusted.
Sales activity was mixed across the country in January. In the Midwest, sales rose 30.3% (47.8% y/y) to 99,000. Sales in the West rose 23.5% (49.1% y/y) to 252,000 units. Sales in the Northeast gained 4.8% (46.7% y/y) to 44,000. Working 4.4% lower to 369,000 (-2.4% y/y) were new home sales in the South.
The supply of homes on the market declined to 5.1 months in January from 5.5 in the prior two months. It was the lowest level since November 2017 and down from a high of 7.4 months at the end of 2018. The medium number of months that a new home was for sale rose to 3.3, up from 3.0 in December.
The data in this report 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) | Jan | Dec | Nov | Jan Y/Y % | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Total | 764 | 708 | 692 | 18.6 | 682 | 615 | 617 |
| Northeast | 44 | 42 | 34 | 46.7 | 31 | 32 | 40 |
| Midwest | 99 | 76 | 70 | 47.8 | 71 | 75 | 72 |
| South | 369 | 386 | 403 | -2.4 | 399 | 348 | 341 |
| West | 252 | 204 | 185 | 49.1 | 182 | 160 | 164 |
| Median Price (NSA, $) | 348,200 | 324,100 | 328,000 | 14.0 | 318,817 | 323,125 | 321,633 |
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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