13: New Home Sales Report – ECONOMIC REPORTS FOR ALL MARKETS
This is the 13th video in a series on economic reports created for all markets, or for those who simply have an interest in economics. In this lesson we cover the New Home Sales Report.
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Link to the New Home Sales Report:
http://www.census.gov/const/www/newressalesindex.html
Text From Video:
New Home Sales
The New Home Sales Report monitors the number of new homes sold in the US.
The New Home Sales Report is issued monthly by the Census Bureau. I’ll post a link for the report in the text next to the video.
This report is similar to the Existing Homes report. However, instead of homes being counted after the sale closes, in this report homes are counted when the contract for purchase is signed.
Economists look at new home sales to gauge turning points in the economy. While new homes are only about 15-20% of the total quantity of homes purchased each month, new home sales and construction generate a lot of jobs, spending, and investment.
Typically only about 25% of all new homes sold are already built. About half of the remaining 75% are sold before the home construction has begun, and the other half are sold during the construction phase.
This makes the New Homes Report and excellent leading indicator for many sectors.
The report contains is a very short summary, and 3 tables.
The first table shows the number of new homes that have sold, as well as the number of new homes for sale. The second table shows the number of new houses sold by sales price;
and the third table shows the number of homes sold and for sale by stage of construction.
Looking at Table 1:
The numbers shown are in “thousand houses” and are reported as an annualized number. In other words, the numbers, multiplied by a thousand, show what the change would be for the whole year if the same amount of change remained consistent all year long.
On the upper left section is the seasonally adjusted number of new homes sold per month for the entire US.
Next to that is the number of homes sold in just the Northeast, the Midwest, the South, and the West.
Below this is the percent change from the previous month as well as the precent change from the previous year.
The main statistics reported in the media are the number of New Homes sold in the present month, and the percent change from the previous month.
The upper middle section shows the seasonally adjusted number of homes for sale.
In the column to the right is the seasonally adjusted Month’s Supply.
At the bottom of that column is the percent change from the previous month and the percent change from the previous year for both of these sections.
When the number of homes for sale increases, in other words, there is more supply, prices typically decrease. When the number of homes for sale decrease, in other words, there is less supply, prices typically increase
The bottom half of the table contains non-seasonally adjusted data.
In the left column is the total number of new homes sold in each of the previous 2 years in the entire US.
Next to that is the number of homes sold in just the Northeast, the Midwest, the South, and the West.
Below that is the total number new homes sold those years up to the equilent date in the present year.
Below that is the Year to Date Percent Change. This shows how the present year compares to the same amount of time in the previous two years.
In other words, if this report covers the first three months of the present year, these two rows show the number of new homes sold in the first three months for each of the two previous years.
Below that is the number of homes sold each month for the last 12 months.
The lower middle section shows the non-seasonally adjusted number of homes for sale for the entire country, as well as just the Northeast, the Midwest, the South, and the West.
The column to the right of that shows the non-seasonally adjusted month’s supply of homes presently
for sale.
Music:
Existing Home Sales:
Danse Macabre – Low Strings Finale (Theme)
Exotic Battle
Machinations
Monkoto
Heavy Interlude
Kevin MacLeod incompetech.com
Duration : 0:7:8
[youtube Vt3cX1UuqLo]