2010 Economic Calendar
POWERED BY  econoday logo
Event Definitions   |   Today's Calendar   |   

New Home Sales  
Released On 9/24/2010 10:00:00 AM For Aug, 2010
PriorPrior RevisedConsensusConsensus RangeActual
New Home Sales - Level - SAAR276 K278 K290 K275 K to 320 K288 K

Just when housing indications were pointing to movement up from a deep low, new home sales come in unchanged in August at a 288,000 annual unit rate and unchanged from July (revised up from 276,000). The upward revision to July is modest and offset in part by a downward revision to June. The July and August rates are at the bottom for this series, a hole created by second-round housing stimulus that pulled sales into the Spring at the expense of Summer.

Supply is being swollen by a lack of sales not by the proportion of homes on the market as total supply fell 1.4 percent to 206,000 for the lowest level since way back in 1968. Heavy supply continues to wear down prices which ticked mostly lower in August including a 0.6 percent slip for the median price to $204,700 and a new seven-year low.

Heavy supply of homes on the market is a major negative for the whole economic outlook. Today's data put the brakes on a strong morning rally for the stock market.

Consensus Outlook
New home sales fell 12.4 percent in July to a record low 276,000 unit annual rate for a series that goes back to 1963. This compares to recent highs of 408,000 in July 2009 and 414,000 in April of this year. Supply rose steeply, to 9.1 months from June's 8.0 months. Looking ahead, early indications are not good. The National Association of Homebuilders Housing Market Index was very weak in July and August-especially for traffic viewing homes.

New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.  Why Investors Care
There is no question that lower interest rates boost home sales. Other factors also impact housing decisions, such as employment and income growth, and wealth stemming from stock market gains.
Data Source: Haver Analytics

2010 Release Schedule
Released On: 1/272/243/244/235/266/237/268/259/2410/2711/2412/23
Release For: DecJanFebMarAprMayJunJulAugSepOctNov

powered by  [Econoday]