December New Home Sales Jump 3.7% From Huge Negative Revisions

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New home sales rose a seemingly solid 3.7% to 621K but the reason is suspect: Strong negative revisions in Oct and Nov.

The Census department reported New Home Sales jumped 16.9% in November to 657,000 units.

Today it says November sales rose to 599,000 from a revised lower October total 549,000. Sales are up 3.1% from revisions that subtracted 71,000 units in prior months.

By region, sales rose 44.8% in the Northeast, fell 15.3% in the Midwest, rose 5.0% in the South, and Rose 1.4% in the West.

Treat these numbers with a bit of skepticism.

New Home Sales and New Homes For Sale

Note the rise in builder speculation. Builders have 344,000 completed homes for sale.

The census bureau is still struggling to catch up from the government slowdown. The January new home sales report is due March 14.

Mike "Mish" Shedlock

Comments (4)
No. 1-4
2banana
2banana

In NOVEMBER???

"sales rose 44.8% in the Northeast"

Mish
Mish

Editor

"sales rose 44.8% in the Northeast"

Yes but it is a very small region. These sorts of stats for the NE happen all the time. The South and West are huge regions and the Midwest medium

DFWRealEstate
DFWRealEstate

This is old news, but I guess we'll take what we can get. Lower rates have provided a lift to new home sales in the Dallas-Fort Worth area so far this year. February numbers are going to show a modest improvement. That being said, new home prices are lower than a year ago. Buyers are still looking for value, and builders are trying to keep price points lower to move product. Unfortunately for many buyers, this means they are receiving less square footage for those watered down prices. Price per square foot is still a tough pill to swallow in many instances.

Six000mileyear
Six000mileyear

The chart clearly shows the number of new homes for sale lag the number of new homes sold. With the break of support in the new homes sold, there is a glut of new homes for sale. As soon as the new hones for sale break below is support, the bear market in housing will be confirmed.