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April 24, 2018 | New Home Sales Top Estimates, Hit Four-Month High, Huge Surge in the West

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
New home sales rebounded strongly in March and revisions took February higher.

The Census Bureau’s New Residential Sales Report shows a sales rebound in March.

  • New Home Sales: Sales of new single-family houses in March 2018 were at a seasonally adjusted annual rate of 694,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4.0 percent above the revised February rate of 667,000 and is 8.8 percent above the March 2017 estimate of 638,000.
  • Sales Price: The median sales price of new houses sold in March 2018 was $337,200. The average sales price was $369,900.
  • For Sale Inventory and Months’ Supply: The seasonally-adjusted estimate of new houses for sale at the end of March was 301,000. This represents a supply of 5.2 months at the current sales rate.

Sales, For Sale, Supply

One can discount the Northeast. It is the smallest region, the region most impacted by weather, and thus the most volatile.

The entire surge in March was in the West. The confidence level is +- 32%. Revisions are likely.

Mike “Mish” Shedlock

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April 24th, 2018

Posted In: Mish Talk

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