Global| May 24 2016U.S. New Home Sales Jump to January 2008 High; Prices Strengthen
by:Tom Moeller
|in:Economy in Brief
Summary
The housing market improved significantly as the spring selling season unfolded. Sales of new single-family homes during April jumped 16.6% to 619,000 (AR) from 531,000 in March, revised from 511,000. Sales in February and January [...]
The housing market improved significantly as the spring selling season unfolded. Sales of new single-family homes during April jumped 16.6% to 619,000 (AR) from 531,000 in March, revised from 511,000. Sales in February and January also were revised up. The increase lifted sales to the highest level since January 2008 and by roughly one quarter y/y. Sales of 520,000 had been expected in the Action Economics Forecast Survey.
Strength in sales was accompanied by improved pricing power. The median price of a new home increased 7.8% to a record $321,100 (9.7% y/y). The average price of a new home increased 7.3% to $379,800 (13.5% y/y).
The rise in home sales was paced by a roughly one-half increase in the Northeast, and sales tripled versus the year prior. Sales in the South rose 15.8% to 352,000 (18.1% y/y). In the West, sales gained 18.8% to 152,000 (23.6% y/y). To the downside were sales in the Midwest where they eased 4.8% (-9.1% y/y) to 60,000, down for the third month this year.
The months supply of homes at the current sales rate fell to 4.7, the lowest level since February of last year. The median number of months a new home was on the market rose to 4.3 (NSA), the longest time since May 2013.
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) | Apr | Mar | Feb | Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 619 | 531 | 538 | 23.8 | 503 | 440 | 430 |
| Northeast | 55 | 36 | 32 | 323.1 | 24 | 28 | 31 |
| Midwest | 60 | 63 | 59 | -9.1 | 61 | 58 | 61 |
| South | 352 | 304 | 296 | 18.1 | 287 | 244 | 233 |
| West | 152 | 128 | 151 | 23.6 | 131 | 110 | 106 |
| Median Price (NSA, $) | 321,100 | 297,900 | 306,600 | 9.7 | 297,258 | 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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