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 Declined 0.3% in October, to a 368K Annual Rate
Posted Under: Data Watch • Home Sales • Housing

Implications: New home sales dipped in October but are still in a general rising trend. Although new home sales fell 0.3% in October, and were revised down for last month, they still remain near the highest levels since April 2010. Sales are up 17.2% from a year ago. Meanwhile, as the lower chart to the right shows, overall inventories remain close to record lows. Although the months' supply of new homes rose to 4.8, it remains near the lowest levels since 2005, well below the average of 5.7 over the past 20 years and not much above the 4.0 months that prevailed in 1998-2004, during the housing boom. The slight increase in new home inventories was mostly due to a rise in homes not started. Completed homes also added to inventories. The median price of a new home fell 4.2% in October, but still remains up 5.7% from a year ago, consistent with the positive year over year increases we have been seeing from other house price indices. Not only are prices up, but the median number of months a new home sits on the market before being purchased is now down to 5.9 months from 7.2 just one year ago. This is the lowest level in five years and shows demand is picking up. The road ahead for housing may be bumpy from time to time, but it looks better than it has in years. Look for housing to continue to move higher in 2013.

Click here for a PDF version
Posted on Wednesday, November 28, 2012 @ 10:55 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 and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan 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 © 2018 All rights reserved.