Background on New Home Sales in the US
New home sales in the United States experienced a slight decline in July, falling by 0.6%, to an unadjusted annual rate of 652,000 units, according to a report released by the U.S. Census Bureau’s Department of Commerce on Monday.
June Sales Revised Upward
The previously reported sales for June were revised upwards, with the unadjusted annual rate increasing from 627,000 units to 656,000 units.
Market Expectations and Impact
Economists surveyed by Reuters had forecasted that new home sales, which account for more than 10% of total U.S. housing sales, would rise to an annual rate of 630,000 units.
New home sales, which are recorded at the signing of a contract, can be volatile from month to month and are subject to significant revisions.
Historical Context and Current Trends
The recent decline in July follows a broader trend of the housing market grappling with high mortgage interest rates. This challenging environment has led to fluctuations in new home sales.
In comparison, new home sales had decreased by 8.2% on an annual basis in July of the previous year.
Key Questions and Answers
- What were the new home sales figures for July 2023? New home sales fell by 0.6% to an unadjusted annual rate of 652,000 units.
- How were June sales revised? The previously reported June sales were upwardly revised to 656,000 units from the initially reported 627,000 units.
- What were market expectations for new home sales? Economists surveyed by Reuters had projected an annual rate of 630,000 units.
- Why are new home sales figures subject to revisions? New home sales, recorded at the signing of a contract, can be volatile and are prone to significant adjustments as more data becomes available.
- How do current trends in new home sales compare to previous years? The recent decline in July 2023 follows a trend of the housing market facing challenges due to high mortgage interest rates. In comparison, new home sales had decreased by 8.2% annually in July of the previous year.
