2013 Economic Calendar
POWERED BY  econoday logo
Event Definitions   |   Today's Calendar   |   

New Home Sales  
Released On 1/25/2013 10:00:00 AM For Dec, 2012
PriorPrior RevisedConsensusConsensus RangeActual
New Home Sales - Level - SAAR377 K398 K388 K375 K to 406 K369 K

Highlights
A huge upward revision to November makes for an unexpected and very outsized comparison with December. New home sales in December plunged 7.3 percent to an annual rate of 369,000. November is now revised 22,000 higher for a 9.3 percent monthly surge to 398,000 which is by far the highest rate since the housing stimulus of April 2010. October is even revised upward, by 3,000 to 364,000.

New homes are in short supply though December's adjusted number of homes on the market, at 151,000, is up 2,000 from November and up 4,000 from October. The fall in December's sales rate really brought up supply at the current sales rate, from a seven-year low of 4.5 months to 4.9 months which however is still lean.

The best news in the report, aside from November's revision, are prices which continue to move higher, up 1.3 percent to $248,900 for the highest median price in more than five years. The price data in this report are very volatile and aren't based on repeated transactions which makes them hard to read. But hard to read or not, year-on-year gains for both the median and average prices are in the mid-teens.

Trends have to be emphasized when a surprise report hits like this one. New home sales did fall back and fall back substantially in December, but the curve going into December was pointing sharply higher. Prices are firming in the housing sector, which still looks to be perhaps the biggest story for the 2013 economy. The Dow is moving off opening highs in initial reaction to this report.

Consensus Outlook
New home sales showed strength in November with sales up 4.4 percent to an annual rate of 377,000. October was revised 7,000 lower to 361,000, weakness largely offset by a 5,000 upward revision to September. New home sales, which started the year near 340,000, have slowly been building up momentum during 2012. Scarcity of supply was a big factor in the home sales market, at 4.7 months at the current sales rate for new homes versus 4.9 months in October.

Definition
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
 
[Chart]
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
 
 

2013 Release Schedule
Released On: 1/252/263/264/235/236/257/248/239/2512/412/412/24
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


powered by  [Econoday]