New Home Sales Report Today
New Home Sales, commonly referred to as “new residential sales,” is an economic indicator that tracks the sale of newly constructed residences. It is extensively watched by investors since it is seen as a lagging signal of real estate market demand and, thus, a factor influencing mortgage rates. Household income, unemployment, and interest rates are all variables that influence it.
The United States Census Bureau releases two versions of the New Home Sales metric: a seasonally adjusted figure and an unadjusted one. The adjusted value is shown as a yearly total, whereas the unadjusted figure is presented as a monthly total. These numbers are provided for several areas and the entire nation.
New home sales are completed when a sales contract or deposit is signed or accepted. In any stage of construction, the home might be: not yet started, in the process of being built or fully finished. About 10% of the US housing market is made up of new house sales. Preliminary numbers for new single-family home sales are subject to major changes because they are mostly based on data from construction permits.
New Home Sales Report for February 2023
Source: U.S. Census Bureau
The housing market showed further signs of stabilization in February as new home sales rose for the third consecutive month. The US Department of Housing and Urban Development and the US Census Bureau reported that sales of newly constructed homes increased by 1.1% from January. This was in response to the historically low inventory of existing homes for sale, which made buyers turn to new construction.
Despite the positive trend, new home sales fell 19% from a year ago. The median price for a new home also rose to $438,200, up from $427,500 in January. The market remains attractive to many buyers who are looking for new homes that meet their specific needs and preferences. The increase in new home sales is a welcome sign for the housing market, which has struggled with historically low inventory levels and high demand. Additionally, demographic drivers continue to be strong in pushing for more new home sales.
The rise of remote and hybrid work is pushing high-earning households into a life stage where they may be looking to upsize or move to a more desirable location. This has fueled demand for new construction as buyers seek out homes that meet their changing needs. However, the market is not without its challenges. Rising mortgage rates, inflation concerns, and supply chain disruptions are just a few of the factors that could impact the housing market in the coming months. Despite these headwinds, the continued growth in new home sales is a positive sign for the market.
The inventory of available homes for sale remains a concern. The seasonally-adjusted estimate of new houses for sale at the end of February was 436,000, representing a supply of 8.2 months at the current sales rate. This is a slight improvement from January’s 8.4 months of supply, but still well above the ideal level of six months or less. The months’ supply indicates how long the current for-sale inventory would last given the current sales rate if no additional new houses were built.
Overall, the latest new home sales report shows that the housing market is stabilizing, but there are still challenges that need to be addressed in terms of inventory and affordability. As the economy continues to recover from the pandemic and demographic trends shift, it will be important for builders, policymakers, and industry leaders to work together to ensure that the housing market remains strong and accessible to all.
The Federal Reserve’s vigorous campaign of monetary policy tightening to slow the economy and manage inflation was having some desired effects on the housing market. A total housing market crash is improbable, however, while home values remain elevated and there is a severe dearth of previously owned properties.
New Homes Sold by Region
Region
New Homes Sold (Jan)
New Homes for Sale (Jan)
New Homes Sold (Feb)
New Homes for Sale (Feb)
North-East
35,000
33,000
21,000
34,000
Mid-West
72,000
43,000
71,000
41,000
South
403,000
259,000
415,000
250,000
West
123,000
103,000
133,000
102,000
The number of new and existing homes sold in different regions of the US in January and February of 2023. In January, the number of new homes sold was highest in the South region with 403,000 sales, followed by the West with 123,000 sales, Mid-West with 72,000 sales, and the Northeast with 35,000 sales.
The number of new homes for sale was highest in the South region with 259,000 homes available, followed by the West with 103,000 homes available, Mid-West with 43,000 homes available, and the Northeast with 33,000 homes available.
In February, the number of new homes sold was highest in the South region with 415,000 sales, followed by the West with 133,000 sales, Mid-West with 71,000 sales, and North-East with 21,000 sales. The number of new homes for sale was highest in the South region with 250,000 homes available, followed by the West with 102,000 homes available, Mid-West with 41,000 homes available, and the Northeast with 34,000 homes available.
These numbers suggest that the housing market in the South region is relatively strong, with a high number of new homes sold and a high level of inventory. The West and Mid-West also appear to be performing well. However, the Northeast seems to be lagging with lower numbers in both categories. Overall, the data suggest that the US housing market is holding steady, with some regional variation.
New Home Sales Trend [Previous Months]
Here’s the region-wise tabular data for new home sales from October 2021 to 2022. The units displayed are in thousands and are the seasonally adjusted annual rate. The data estimates only include new single-family residential structures. Sales of multi-family units are excluded from these statistics.
NORTHEAST: Connecticut, Maine, Massachusetts New Hampshire New Jersey New York Pennsylvania Rhode Island Vermont
MIDWEST: Illinois, Iowa, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska North Dakota Wisconsin South Dakota Ohio
SOUTH: West Virginia, Virginia, Texas, Tennessee, South Carolina, Oklahoma, North Carolina, Mississippi, Maryland, Louisiana, Kentucky, Georgia, Florida, Alabama, Delaware, District of Columbia, Arkansas
WEST: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming
Northeast
Midwest
South
West
Total
October 2022
51,000
50,000
399,000
132,000
632,000
Change Month over Month
45.71 %
-34.21 %
15.99 %
-0.75 %
7.48 %
Change Year over Year
70.00 %
-38.27 %
-11.33 %
-28.26 %
-15.17 %
Previous
September 2022
35,000
76,000
344,000
133,000
588,000
August 2022
26,000
65,000
433,000
137,000
661,000
July 2022
17,000
54,000
342,000
98,000
511,000
June 2022
15,000
68,000
389,000
113,000
585,000
May 2022
18,000
52,000
389,000
171,000
630,000
April 2022
48,000
73,000
307,000
163,000
591,000
March 2022
53,000
94,000
414,000
202,000
763,000
February 2022
43,000
84,000
451,000
194,000
772,000
January 2022
25,000
78,000
438,000
260,000
801,000
December 2021
27,000
86,000
456,000
242,000
811,000
November 2021
32,000
55,000
397,000
241,000
725,000
October 2021
30,000
81,000
450,000
184,000
745,000
Sources
https://www.census.gov/
https://www.census.gov/construction/nrs/pdf/newressales.pdf
https://www.mortgagenewsdaily.com/data/new-home-sales
https://www.nahb.org/news-and-economics/housing-economics/national-statistics/new-and-existing-home-sales-reports
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