EmailEconomic
Last Update: 24-May-12 18:26 ET
New Home Sales
Highlights
- New home sales increased from 332,000 in March to 343,000 in April. The Briefing.com consensus expected new home sales to increase to 339,000.
Key Factors
- The lack of available distressed properties, which hindered existing home sales, bolstered new home sales growth by reducing the premium paid for a new home versus an existing home. Until another wave of bank-owned homes enters the market, new home sales should continue to outperform.
- Total inventories edged slightly higher, increasing 1.4% in April to 146,000. That level is still near historic lows and will not cause builders to cut back on new construction.
Big Picture
- The lack of desirable distressed properties has caused the price spread between new and existing homes to narrow slightly in recent months. As that trend continues, homebuilder outlooks should improve.
| Category | APR | MAR | FEB | JAN | DEC |
|---|---|---|---|---|---|
| Total Sales | 343K | 332K | 358K | 339K | 339K |
| Inventory (months) | 5.1 | 5.2 | 4.9 | 5.3 | 5.4 |
| Median Price Y/Y | 4.9% | 6.1% | 8.0% | -7.7% | -9.4% |
