Recent Updates

  • Israel: Foreign Trade Indices (Q1)
  • US: New Residential Sales (May)
  • Markit PMI: Manufacturing Survey - Japan, US (Flash-Jun); Composite & Services PMI Survey: US (Flash-June)
  • Euro area: Monetary Conditions Index (May)
  • Netherlands: Labor Accounts, BOP, GDP, Financial Accounts (Q1); Belgium: Business Survey (Jun)
  • Canada: CPI (May)
  • Italy: Industrial Turnover & Orders (Apr)
  • more updates...

Economy in Brief

U.S. New Home Sales Jump to January 2008 High; Prices Strengthen
by Tom Moeller  May 24, 2016

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
close
large image