Global| Nov 26 2014U.S. New Home Sales Improve; Prices Jump
by:Tom Moeller
|in:Economy in Brief
Summary
New home sales during October edged up 0.7% m/m to 458,000 (1.8% y/y) following a 0.4% rise to 455,000 in September, initially reported as 467,000. The latest figure disappointed expectations for 470,000 sales in the Action Economics [...]
New home sales during October edged up 0.7% m/m to 458,000 (1.8% y/y) following a 0.4% rise to 455,000 in September, initially reported as 467,000. The latest figure disappointed expectations for 470,000 sales in the Action Economics Forecast Survey. These volume numbers are quoted at seasonally adjusted annual rates.
The median price for a new home surged 16.5% (15.4% y/y) to $305,000 from $261,700 in September, revised from $259,000. The average price of a new home jumped by more-than one quarter to $401,100 (19.5% y/y), revised from $313,200.
Home sales were mixed across the country. Sales in the Midwest jumped 15.8% to 66,000 (-2.9% y/y) while sales in the Northeast gained 7.1% to 30,000 (-6.3% y/y). Sales in the West declined 2.7% to 110,000 (+27.9% y/y) while sales in the South were off 1.9% to 252,000 (-4.5% y/y).
The inventory of unsold homes increased 1.0% to 212,000 (15.2% y/y), the highest level since June 2010 and up 49.3% from the 2012 low. The months' sales supply of new homes inched up m/m to 5.6 months versus last year's low of 3.9 months. The length of time to sell a new home was essentially stable m/m at 3.0 months, 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 | Oct | Sep | Aug | Y/Y % | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total SAAR, 000s | 458 | 455 | 453 | 1.8 | 430 | 368 | 306 |
| Northeast | 30 | 28 | 28 | -6.3 | 31 | 29 | 21 |
| Midwest | 66 | 57 | 55 | -2.9 | 61 | 47 | 45 |
| South | 252 | 257 | 247 | -4.5 | 233 | 196 | 168 |
| West | 110 | 113 | 123 | 27.9 | 106 | 97 | 72 |
| Median Price (NSA, $) | 305,000 | 261,700 | 287,700 | 15.4 | 265,092 | 242,108 | 224,317 |
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.
