Did New Home Sales Benefit the Economy?
If you’re as lucky as I am, you’re enjoying a beautiful spring day–the birds are chirping in the trees, there’s not a single cloud in the brilliant blue sky, the summer breeze carries the light scent of lilacs and fresh cut grass, and all you can think of is … When does the Commerce Department release the new home sales data for April 2011? Well, my friend, you’re in luck. Here’s your Cheat Sheet:
Sales: Sales of new single-family houses in April 2011 were at a seasonally adjusted annual rate of 323,000.
Month-over-Month Change: This is 7.3% above the revised March rate of 301,000.
Year-over-Year Change: This is 23.1% below the April 2010 estimate of 420,000.
Prices: The median sales price of new houses sold in April 2011 was $217,900 up from $213,800 in March; the average sales price was $268,900, also up from last month. The seasonally adjusted estimate of new houses for sale at the end of April was 175,000.
Inventory: This represents a supply of 6.5 months at the current sales rate, down from 7.3 in March. A nice improvement for the moment.
Commentary: If looking at the year-over-year change, things might seem pretty bleak, but figures in April continue to improve upon the record low set in February. Hopefully this will be a continuing trend in the housing (NYSE:IYR) market, though it’s too soon to tell.