The attached file contains this articles commentary as well as tables and charts of the data.
New Home Sales: Strong Sales in Dec & Jan
February 24, 2022
Bottom Line: New home sales rose fell in January but remained robust, dropping modestly after strong sales in December, which were revised even higher. Median prices jumped to nearly $425k from $395k. While most month-to-month variance in median prices is due to shifting composition of sales across regions and types of homes purchased, the trend in prices remains solidly higher. Inventories were higher but remain thin at just over 6 months of supply. Overall, new home sales remain robust, even as the trend rate of gains plateaus modestly amid higher mortgage rates.New Home Sales FELL by 4.5% to 801k, after the prior month was revised higher to 839k. This compared with market expectations for a decline to 803k, from the unrevised December level of 811k. Sales are now 19.3% BELOW their year-ago level.The Inventory of Homes Available for Sale ROSE by 3.0% to 406k. Inventories are now 34.4% ABOVE their year-ago.Combined with the decline in sales, the Months' Supply increased to 6.1 months from 5.6 months. This is modestly ABOVE a normal level of 6.0 months.Home Prices ROSE with median prices 13.4% ABOVE their year-ago level and with average prices 18.7% ABOVE their year-ago level.
Article by Contingent Macro Advisors