EmailEconomic
Last Update: 23-Apr-13 10:19 ET
New Home Sales
Highlights
- New home sales increased 1.7% in March to 417,000. There was no revision to the February report, which indicated 411,000 new homes were sold. That March number is still down from the recent January peak when 445,000 homes were sold. The Briefing.com consensus expected sales to increase to 415,000.
Key Factors
- Inventory levels inched higher, rising from 150,000 in February to 153,000 in March. That represents a 4.4-month supply and is still well below levels considered normal. Like existing homes, new home inventories should trend around a 6.0-month supply when the industry is in good shape.
Given the weak inventory levels, housing construction levels should continue to trend higher over the medium term.
The median sales price of a new home increased 3.0% y/y to $247,000.
Big Picture
- New home prices have risen at a faster rate than comparable existing home prices. As a result, the new home price premium is near historical highs. Until prices drop, the new home sector will lag the general housing recovery.
| Category | MAR | FEB | JAN | DEC | NOV |
|---|---|---|---|---|---|
| Total Sales | 417K | 411K | 445K | 390K | 394K |
| Inventory (months) | 4.4 | 4.4 | 4.0 | 4.6 | 4.5 |
| Median Price Y/Y | 3.0% | 10.4% | 10.7% | 18.2% | 14.3% |
