by Calculated Risk on 3/23/2023 10:06:00 AM
The Census Bureau reports New Home Sales in February were at a seasonally adjusted annual rate (SAAR) of 640 thousand.
The previous three months were revised down.
Click on graph for larger image.
The first graph shows New Home Sales vs. recessions since 1963. The dashed line is the current sales rate.
New home sales are close to pre-pandemic levels.
The second graph shows New Home Months of Supply.
The months of supply decreased in February to 8.2 months from 8.3 months in January.
The all-time record high was 12.2 months of supply in January 2009. The all-time record low was 3.3 months in August 2020.
This is well above the top of the normal range (about 4 to 6 months of supply is normal).
supply of 8.2 months at the current sales rate.”
Sales were below expectations of 650 thousand SAAR, and sales in the three previous months were revised down. I’ll have more later today.