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2005 U.S. Economic Events & Analysis
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New Home Sales
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

Released on 2/28/05 For Jan 2005
New Home Sales, Level, SAAR
 Actual 1,106,000  
 Consensus 1,125,000  
 Consensus Range 1,050,000  to  1,260,000  

Highlights
New home sales fell sharply in January to a lower-than-expected annual rate of 1.106 million, disappointment offset in part by an upward revision to December which now shows a 1.218 million rate vs. a prior 1.098 million rate.

But weakness was broad in February, including sharp 33% declines in the Northeast and Midwest. Supply of new homes rose a sharp 3.5% in the month to a record 438,000 -- swollen supply may point to lower construction rates ahead.

More startling was a sharp 13% fall in the median price of a new home to $199,400. The level is down 4.8% year-on-year.

Abundant supply and falling prices make this new home sales report unusually interesting. Indicators earlier this month, including existing home sales and housing starts, showed unusual strength in February. If today's report doesn't prove to be a one-month fluke and other data also begin to erode, it could prove to be the first hint of a housing slowdown that many economists are expecting.

Market Consensus Before Announcement
New single-family home sales were virtually unchanged in December at a 1,098,000-unit rate from the November selling pace. Mortgage rates have remained low and have helped to maintain a relatively strong housing market.

New home sales Consensus Forecast for Jan 05: 1,125,000
Range: 1,050,000 to 1,260,000-unit rate
Trends
[Chart] There is no question that lower interest rates boost home sales. Other factors also impact housing decisisions, such as employment and income growth, and wealth stemming from stock market gains.
Data Source: Haver Analytics

2005 Release Schedule
Released On: 1/31 2/28 3/24 4/26 5/25 6/24 7/27 8/24 9/27 10/27 11/29 12/23
Released For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov


 
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