Global| Sep 24 2014U.S. New Home Sales Jump to 2008 High
by:Tom Moeller
|in:Economy in Brief
Summary
New home sales during August surged 18.0% (33.3% y/y) to 504,000 from a revised 427,000 in July, initially reported as 412,000. It was the highest level of sales since May 2008. The increase easily beat expectations for 430,000 sales [...]
New home sales during August surged 18.0% (33.3% y/y) to 504,000 from a revised 427,000 in July, initially reported as 412,000. It was the highest level of sales since May 2008. The increase easily beat expectations for 430,000 sales in the Action Economics Forecast Survey. These volume numbers are quoted at seasonally adjusted annual rates.
The greatest sales strength was logged in the West with a 50.0% m/m jump to 153,000 (84.3% y/y). That was followed by the Northeast where sales increased 29.2% (-3.1% y/y) to 31,000. Sales in the South posted a 7.8% gain (27.2% y/y) to 262,000 while sales in the Midwest were unchanged both y/y and m/m at 58,000.
The median price for a new home declined 1.6% (+8.0% y/y) to $275,600 from $280,100 in July, revised from $269,800. The average price of a new home improved 0.8% (11.9% y/y) to a new peak of $347,900.
The inventory of unsold homes increased 1.0% (16.0%) to 203,000. That was the highest level since August 2010 and up 43.0% from the 2012 low. The months' sales supply of new homes declined to 4.8 months, its lowest level since June of last year. The length of time to sell a new home of 3.3 months was higher than the 2.9 months last August but 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 | Aug | Jul | Jun | Y/Y % | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total SAAR, 000s | 504 | 427 | 419 | 33.0 | 430 | 368 | 306 |
| Northeast | 31 | 24 | 26 | -3.1 | 31 | 29 | 21 |
| Midwest | 58 | 58 | 54 | 0.0 | 61 | 47 | 45 |
| South | 262 | 243 | 236 | 27.2 | 233 | 196 | 168 |
| West | 153 | 102 | 103 | 84.3 | 106 | 97 | 72 |
| Median Price (NSA, $) | 275,600 | 280,100 | 283,100 | 8.0 | 265,092 | 242,108 | 224,317 |
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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