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 3.3% in April, to a 343,000 annual rate
Posted Under: Bullish • Data Watch • Home Sales

Implications: New home sales should be the last piece of the housing puzzle to recover, and they now look to be on the mend. New home sales beat consensus expectations and are now up 9.9% from a year ago. This is great news considering banks can now move forward with foreclosures more quickly, which is bringing a large inventory of bargain-priced existing homes on the market. The road ahead looks better than it has looked in years. The upward trend in home sales is only one piece of good news for builders. Another is that the total inventory of new homes is near rock bottom levels (see lower chart to right). Notably, however, the inventory of new homes where the builder has yet to break ground continues to climb, showing builders are getting ready for what they believe will be more buyers. We think they're right. In fact, a lack of inventories is probably holding back sales. The other piece of good news for builders is that new home prices are climbing, with the median price of a new home up 4.9% from a year ago and average prices up 5.1%. In other news on home prices, the FHFA index, a measure for homes financed by conforming mortgages, jumped 1.8% in March, the largest monthly gain since the start of the series back to 1991. Prices are now up 2.7% from a year ago, the largest gain since November 2006.

Click here for a PDF version.
Posted on Wednesday, May 23, 2012 @ 11:32 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 professionals 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. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.