U.S. December New Home Sales correct from November weakness
December new home sales at 664k are up 8.0% from November and stronger than expected, while November’s weak outcome has been revised up to 615k from 590k, now a 9.0% decline. Survey evidence from the MBA and NAHB has recently been showing signs of improvement.
The recovery in housing demand appears due to recent declines in mortgage rates, which may not extend much further in UST yields continue to move off their lows.
December’s new home sales gain does not fully reverse November’s loss. November new home sales even with the revision were the lowest for a year. December’s data saw three out of four regions showing gains, the exception being a third straight decline in the West.
Price data is mixed on the month with the median down 3.0% and the average up by 0.4%, but both series ae weak yr/yr. the median at -13.8% from -7.9% in November and the average at -14.3% from -7.9%. Improved supply is probably part of the explanation for price weakness.
