Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  New single-family home sales increased 17.5% in December

 
Implications:  New home sales jumped 17.5% in December, the biggest percentage gain since 1992, coming in well above consensus expectations.  The increase was mostly due to stronger sales in the West.  Outside the West, sales were up only slightly.  It is important to note that new home inventories are still declining and are already at levels not seen since the late 1960s.  As inventories keep falling, homebuilders will eventually need to start building more homes.  Given a growing population, the pace of new home sales should roughly triple over the next several years to about 950,000.  On the price front, the median price of new homes sold rose to $241,500 in December, coming in at the highest level since April 2008. This was probably influenced by the large increase of sales in the West where homes are usually priced higher.  Median new home prices are up 8.5% versus a year ago.  In other recent housing news, the Case-Shiller index, a measure of home prices in the 20 largest metro areas, dipped 0.5% in November (seasonally-adjusted) versus a consensus expected decline of 0.8%.  Prices are down 1.6% in the past year, but still up 1.2% versus the cycle low in May 2009.  The FHFA index, a price measure for homes financed by conforming mortgages, was unchanged in November but down 4.3% in the past year.  In the factory sector, the Richmond Fed index, a measure of manufacturing in the mid-Atlantic, came in at +18 in January versus +25 in December.  Although lower, the Richmond index still signals strong growth in manufacturing activity.

Click here to view the entire report.
Posted on Wednesday, January 26, 2011 @ 10:45 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2019 All rights reserved.