Another Housing V Shape Recovery Data Line
Today the Census reported an excellent beat in new home sales, which now has created another V shape recovery in the housing market for 2020.
New Home Sales
Sales of new single-family houses in June 2020 were at a seasonally adjusted annual rate of 776,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 13.8 percent (±17.8 percent)* above the revised May rate of 682,000 and is 6.9 percent (±13.7 percent)* above the June 2019 estimate of 726,000.
The median sales price of new houses sold in June 2020 was $329,200. The average sales price was $384,700.
For Sale Inventory and Months’ Supply
The seasonally-adjusted estimate of new houses for sale at the end of June was 307,000. This represents a supply of 4.7 months at the current sales rate. The July report is scheduled for release.
The most critical housing chart we have is the monthly home supply for the new home sales market. This is much different than the existing home sales market. This has much more significant economic implications. Right now, it looks fantastic!
The builder’s confidence index is another V-shape recovery data line.
The most recent purchase application data, showed a 19% growth year over year this week. Notice the V shape here, and the last 9 weeks have demonstrated positive year over year growth.
Logan Mohtashami | HousingWire
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