Us New Home Sales Up In January

last updated on

Us New Home Sales Up In January

US New Home Sales Up By 1.5% In January

The sales of new homes in the USA increased faster than forecasted in January. Given that the South region saw a sharp decline, this reading is nothing short of amazing.

They are experiencing an increased demand for newly constructed homes. At the same time, the market is going through a shortage of previously owned homes.

The data reveals a 1.5% increase in the new home sales, which makes it around 661K. The commerce department also revised December's reading lower to around 651K. Earlier, the department had cited several 664K.

Shortage Of Existing Homes

When we measure the sales of existing homes vs. new ones, the latter dramatically outperforms! An expert added that the US economy is facing a housing shortage. As we all know, there's always a demand for homes, so the bulk of demand goes into new constructions.

According to the forecast, a reading of 680K units was expected, but cold temperatures put a dent in the number. A possible explanation is that lower temperatures forced the buyers to stay home. After all, the effects of temperature were also seen in factory production, homebuilding, and retail sales.

In the USA, the signing of the contract is counted as new home sales. However, we must also remember that this figure can be volatile on a M/M basis. But if we look at the new home sales on a Y/Y basis, a jump of 1.8% was seen during January.

In the West region, sales are up by 38.7%, while the Northeast saw an increase of almost 72%. In the Midwest, the increase was 7.7%, while the South showed a decline of -15.6%.

The new home sales indicator provides direct insight into the US real estate sector and thus also tells us about the health of the US economy as a whole.

Trending Stories