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2008 Economic Calendar |
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Resource Center » U.S. & Intl Recaps | Release Dates | Why Investors Care | Today's Calendar
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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 9/27/05 For Aug 2005 | ||||||||||
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Highlights
New home sales fell sharply in August, down 9.9% to an annual rate of 1.237 million. The drop was underscored by a downward revision to prior months: 1.373 million from 1.410 million in July and 1.304 million from 1.324 million in June.
Declines were posted across regions with especially severe drops in the Northeast and West, two regions were home prices have been rising sharply.
Despite the declines, the median price of a new home rose 2.5% in the month to $220,300 but is up only 1.0% year-on-year. Yesterday's existing home sales report showed more pressure with a 15.8% year-on-year rise to a median $220,000.
The decline in sales, apart from firmness in prices, is probably a positive for the economic outlook, especially given the possibility of further declines in the hurricane-marred month of September. "Froth" in the nation's housing market is a major concern for Alan Greenspan, who repeated his views just yesterday. But the housing market will now take a backseat to other areas of economy, including manufacturing and especially the jobs market with plenty data on both over the next couple of weeks.
New single-family home sales jumped 6.5 percent in July to a 1,410,000-unit rate. Sales surged in the West, posted healthy gains in the Northeast, but declined in the Midwest and the South. Low mortgage rates should continue to support a strong housing market.
New home sales Consensus Forecast for Aug 05: 1,363,000
Range: 1,330,000 to 1,428,000-unit rate
![[Chart]](chart.gif)
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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. |
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