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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 11/29/05 For Oct 2005 | ||||||||||
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Highlights
New home sales jumped a surprising 13% in October to a much stronger-than-expected annual rate of 1.424 million. Sales in the Northeast and West saw spectacular 40%-plus gains.
As sales rose, supply on the market fell to 4.3 months from 4.7 months. The median price rose 1.6% in the month to $231,300 but is still only up 0.9% on the year (note that price data were revised higher due to prior reporting errors). The median price of an existing home, data issued yesterday, is up a much sharper 16.3% on the year.
The data are exceptionally strong and may renew talk of a housing bubble. Together with a strong consumer confidence report, bonds were weakening and the dollar firming Tuesday morning. Higher interest rates, now at 6.25% for 30-year loans, were supposed to cut into housing strength as they appeared to do in yesterday's existing home sales data. Next data on the housing market will be construction spending for October on Thursday.
New single-family home sales increased 2.1 percent in September after falling sharply in August. The MBA purchase index was down in October and interest rates have been on the rise. Perhaps this will point to slower sales in October.
New home sales Consensus Forecast for Oct 05: 1,200,000 unit rate
Range: 1,150,000 to 1,230,000-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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