Today's Report (10/26/2021)

New Home Sales

Sales of new single‐family houses in September 2021 were at a seasonally adjusted annual rate of 800,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 14.0% (±17.9%)* above the revised August rate of 702,000, but is 17.6%  (±12.1%) below the September 2020 estimate of 971,000.

Sales Price
The median sales price of new houses sold in September 2021 was $408,800. The average sales price was $451,700.

For Sale Inventory and Months’ Supply

The seasonally‐adjusted estimate of new houses for sale at the end of September was 379,000. This represents a  supply of 5.7 months at the current sales rate.

What Is It?

New Home Sales measures the annualized number of new single-family homes that were sold during the prior month.

US New Home Sales Change - New Home Sales measures the change in percentage of the new home sales, a new home sale is considered to be any deposit or contract signing either in the year the house was built or the year after it was built.

What Are The Fundamental Effects?

New homes generate lots of investment, jobs, spending, and production. When buyers move in, it triggers another round of spending on new furniture and other accessories. To look for changes in consumer spending, you’ll see it turn here first. Should home buying begin to wane, it sets off alarms in the economy. Banks are likely to cut back on construction loans. Without capital, new residential investment falls.

How Does It Affect The Markets?

CURRENCY - Foreign investors favor happy American customers, as personal spending increases.

STOCKS - The equity market prefers when consumers are confident because they are more likely to take more risky investments.

BONDS - As consumer sentiment rises it could mean that’ll spend more on riskier investments, which could lead to bond prices being reduced and yields rising to attract more investors.