Global| Dec 22 2017U.S. New Home Sales Surge to Ten-Year High
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of new single-family homes jumped 17.5% (26.6% y/y) to 733,000 (SAAR) during November following 624,000 sales in October, revised from 685,000. Sales were at the highest level since July 2007. Expectations in the Action [...]
Sales of new single-family homes jumped 17.5% (26.6% y/y) to 733,000 (SAAR) during November following 624,000 sales in October, revised from 685,000. Sales were at the highest level since July 2007. Expectations in the Action Economics Forecast Survey had been for 650,000 sales.
The median price of a new home eased 0.3% (+1.2% y/y) to $318,700 from $319,600. The average price of a new home dropped 4.5% (+3.8% y/y) to $377,100 and reversed October's increase.
New home sales continued to improve last month across the country, led by a 31.1% rise (22.8% y/y) in the West to 194,000 after a 5.7% decline. It was the highest level since May 2007. In the South, sales jumped 14.9% (32.5% y/y) to 416,000, also a ten-year high, following a 1.9% decline. Sales increased 9.5% (53.3% y/y) in the Northeast to 46,000, the highest level since January 2008. Sales improved 6.9% in the Midwest to 77,000 after a 5.9% increase.
There was a lessened 4.6 months' supply of homes for sale at the current sales rate. It was the lowest level since April 2016. The median number of months a new home was on the market was roughly steady at a low 3.3 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) | Nov | Oct | Sep | Nov Y/Y % | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total | 733 | 624 | 635 | 26.6 | 561 | 503 | 440 |
| Northeast | 46 | 42 | 41 | 53.3 | 32 | 25 | 28 |
| Midwest | 77 | 72 | 68 | 0.0 | 69 | 61 | 58 |
| South | 416 | 362 | 369 | 32.5 | 317 | 286 | 244 |
| West | 194 | 148 | 157 | 22.8 | 142 | 130 | 110 |
| Median Price (NSA, $) | 318,700 | 319,600 | 328,500 | 1.2 | 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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