Global| Nov 27 2017U.S. New Home Sales Strengthen; Prices Decline
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of new single-family homes increased 6.2% to 685,000 (SAAR) during October following a 14.2% gain to 645,000 in September, revised from 667,000. Sales were at the highest level since October 2007. Expectations in the Action [...]
Sales of new single-family homes increased 6.2% to 685,000 (SAAR) during October following a 14.2% gain to 645,000 in September, revised from 667,000. Sales were at the highest level since October 2007. Expectations in the Action Economics Forecast Survey had been for 620,000 sales.
The median price of a new home declined 3.7% (+3.3% y/y) to $312,800 from $324,900. The average price of a new home surged 5.0% (13.6% y/y) to $400,200.
New home sales continued to improve last month around the country, led by a 30.2% rise (64.7% y/y) in the Northeast after a 16.2% gain. It was the highest level of sales since October 2007. In the Midwest sales jumped 17.9% (16.2% y/y) to 79,000 following a 1.5% decline. Sales increased 6.4% (20.1% y/y) in the West to 167,000, also the highest level since October 2007, after a 9.0% rise. Sales improved 1.3% in the South to 383,000 after a 19.6% increase.
There was a lessened 4.9 months' supply of homes for sale at the current sales rate. It was the lowest level since July 2016. The median number of months a new home was on the market held steady at a low 3.2 months.
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) | Oct | Sep | Aug | Oct Y/Y % | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total | 685 | 645 | 565 | 18.7 | 561 | 503 | 440 |
| Northeast | 56 | 43 | 37 | 64.7 | 32 | 25 | 28 |
| Midwest | 79 | 67 | 68 | 16.2 | 69 | 61 | 58 |
| South | 383 | 378 | 316 | 14.0 | 317 | 286 | 244 |
| West | 167 | 157 | 144 | 20.1 | 142 | 130 | 110 |
| Median Price (NSA, $) | 312,800 | 324,900 | 311,700 | 3.3 | 310,567 | 297,258 | 283,775 |
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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