Global| Mar 24 2015U.S. New Home Sales Surprisingly Improve As Prices Weaken Further
by:Tom Moeller
|in:Economy in Brief
Summary
New home sales during February increased to 539,000 from 500,000 in January, initially reported as 481,000. The latest figure was the highest since February 2008 and surpassed expectations for 470,000 sales in the Action Economics [...]
New home sales during February increased to 539,000 from 500,000 in January, initially reported as 481,000. The latest figure was the highest since February 2008 and surpassed expectations for 470,000 sales in the Action Economics Forecast Survey. These volume numbers are quoted at seasonally adjusted annual rates.
Lower prices are attracting buyers. The median price for a new home in February declined 4.8% to $275,500 from $289,400, revised from $294,300. The average price of a new home slipped 0.9% to $341,000 (+4.6% y/y) from $344,100, revised from 348,300.
Sales in the Northeast more than doubled (87.0% y/y) to 43,000 while sales in the South increased 10.1% (22.0% y/y). Home sales in the Midwest were off 12.9% (-3.6% y/y) and in the West, sales declined 6.0% (+34.0% y/y).
The inventory of unsold homes declined 1.4% to 210,000 (+12.9% y/y). The months' sales supply of new homes fell m/m to 4.7 months, the lowest point since June 2013. The length of time to sell a new home moved slightly higher m/m to 3.5 months, but still was 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 | Feb | Jan | Dec | Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total SAAR, 000s | 539 | 500 | 479 | 25.7 | 439 | 430 | 368 |
| Northeast | 43 | 17 | 31 | 50.0 | 27 | 31 | 29 |
| Midwest | 54 | 62 | 51 | -3.6 | 58 | 61 | 47 |
| South | 316 | 287 | 271 | 23.8 | 245 | 233 | 195 |
| West | 126 | 134 | 126 | 34.0 | 109 | 106 | 97 |
| Median Price (NSA, $) | 275,500 | 289,400 | 295,500 | 2.6 | 283,233 | 265,092 | 242,108 |
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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