The New Home Sales report is an economic indicator that provides valuable insights into the health of the housing market and the overall state of the economy.
It provides an important snapshot of housing demand. Even though it shows what happened in the past, many economist consider it to be one of the leading indicators of the economy.
What is New Home Sales data?
The New Home Sales report, also known as the New Residental Sales report, is a monthly measure of the number of newly constructed homes that have been sold in the United States. It tracks the sales of single-family homes, which are residential structures designed to house one family.
The data in the report includes the number of homes sold, the median and average sales prices, and the inventory of unsold homes.
By monitoring the sales of new homes, the report provides a snapshot of the housing market’s performance and an indication of the level of demand for new construction.
Why is New Home Sales data important?
Nearly 15% of the U.S. GDP comes from the housing market, which is a big chunk of the economy as a whole.
The New Home Sales report is considered an important economic indicator, as it offers insights into the health of the housing market, which is a significant driver of economic growth.
- A strong housing market can signal increased consumer confidence, job growth, and overall economic expansion,
- A weak housing market may indicate economic weakness or reduced consumer spending.
Additionally, new home sales can have a ripple effect on other sectors of the economy, such as construction, finance, and consumer goods, as they influence demand for related products and services.
By analyzing the New Home Sales data, economists, investors, and policymakers can make informed decisions based on the housing market’s current conditions and trends.
Who publishes the New Home Sales data?
The New Home Sales report is produced by the U.S. Census Bureau, a division of the Department of Commerce, in collaboration with the Department of Housing and Urban Development (HUD).
The Census Bureau is responsible for collecting, analyzing, and disseminating economic data related to various aspects of the U.S. economy, including housing.
The New Home Sales data is derived from the Survey of Construction, which gathers information from builders, contractors, and other sources involved in residential construction.
The purpose of the Survey of Construction is to provide current national and regional statistics on starts, completions, and characteristics of new, privately-owned single-family and multifamily housing units and on sales of new single-family houses
When is New Home Sales released?
The New Home Sales report is typically released on a monthly basis, on the 12th workday of the month following the reference month. For example, the report for January would be released on the 12th workday of February.
The Census Bureau publishes the report on its website, making it easily accessible to the general public.