Written by John Lounsbury and Steven Hansen
The headlines say new home sales improved and was above market expectations.
Analyst Opinion of New Home Sales
This month the backward revisions were small and the rolling averages significantly improved. This was a good month for new home sales.
This data series is suffering from methodology issues which manifest as significant backward revision – and this month the revisions were mixed. Home sales move in spurts and jumps – so this is why we view this series using a three month rolling average (rolling averages declined}.
Econintersect analysis:
US Census Headlines:
The quantity of new single family homes for sale remains well below historical levels.
Seasonally Adjusted New Homes for Sale
The headlines of the data release:
Sales of new single-family houses in March 2017 were at a seasonally adjusted annual rate of 621,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 5.8 percent (±15.5 percent)* above the revised February rate of 587,000 and is 15.6 percent (±15.0 percent) above the March 2016 estimate of 537,000.
Unadjusted New Home Sales Monthly Volumes In Thousands
The median sales price of new houses sold in March 2017 was $315,100. The average sales price was $388,200.
