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What is New Home Sales?

Written by Dan Green

Dan Green

Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. Read more about Dan Green.

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Updated: January 21, 2024

What is New Home Sales?

New Home Sales is an economic indicator that tracks the number of newly constructed homes sold in a given period.

TABLE OF CONTENTS

→ New Home Sales: A Detailed Explanation
→ New Home Sales: Chart
→ Common Questions About New Home Sales

New Home Sales: A Detailed Explanation

New Home Sales is an economic indicator that measures the annualized number of new single-family homes sold during a month. It represents the housing market’s sales volume in new construction homes, including building permits issued, new homes under construction, new homes completed, and new homes sold.

The U.S. Census Bureau and the Department of Housing and Urban Development compile and publish the data monthly.

How is New Home Sales Calculated?

The calculation of New Home Sales involves counting the permits, housing starts, and sales of new single-family homes that have been sold or have a sale pending during the month. multi-unit properties are not included. Based on the current month’s data, the count is annualized to estimate the total sales that would occur in a 12-month period.

New Home Sales: Chart

Homebuyer.com uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
Data: U.S. Census Bureau and the Department of Housing and Urban Development. Do not reprint without permission.

Common Questions About New Home Sales

How often is New Home Sales data released?

The New Home Sales report is released monthly, often in the last week of the month.

What is included in New Home Sales data?

New Home Sales data includes the sale of newly constructed single-family homes, whether they are move-in ready homes, homes under construction, or homes yet to be built. It does not include sales of multi-family homes or homes not intended for year-round use.

How is New Home Sales different from Building Permits?

New Home Sales measure actual sales of new homes, while Building Permits indicate the number of new housing units that have been authorized for construction. Building Permits can be a leading indicator for future New Home Sales.

Does New Home Sales data reflect regional housing market trends?

New Home Sales data is often broken down by region, providing insights into regional housing market trends across the United States. This can highlight variations in housing demand and economic conditions in different areas.

How do mortgage rates affect New Home Sales?

Mortgage rates affect New Home Sales because mortgage rate changes change home affordability. Lower interest rates generally make mortgages more affordable, potentially increasing demand for new homes, while higher rates might decrease demand.

Are there seasonal adjustments in New Home Sales data?

Yes, New Home Sales data is seasonally adjusted to account for predictable seasonal variations in the housing market. This adjustment provides a more accurate picture of underlying trends by removing effects due to typical seasonal patterns.

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