Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  New single-family home sales increased 23.6% in June to a 330,000 annual rate
Supporting Image for Blog Post

 
Implications:  After plunging in May to a record low (dating back to 1963), new home sales rebounded sharply in June.  The homebuyer tax credit – which required a contract on a home by the end of April – has obviously had a large influence on the recent volatility of new home sales.  New homes were sold at a 422,000 pace in April as people got in their purchases before the tax credit expired, but then plummeted to a 267,000 pace in May.  The rebound in June shows that the worst of the tax credit "hangover" may be over, although this is still the second slowest month on record.  Given demographic trends, we believe over the next several years the annual rate of sales will eventually increase to 950,000. At present there are only 210,000 new homes in builders' inventories, the fewest since 1968, when the US population was 35% smaller than it is now.  At the recent pace of sales, it would take 7.6 months for builders to sell this inventory.  However as the pace of sales gradually increases back to 950,000, the months' supply will fall to a record low of 2.6, assuming builders keep the number of available homes unchanged at current levels.  In turn, this signals that home building has been so slow for so long that there is room for builders to increase construction activity.

Click here to view the entire report.
Posted on Monday, July 26, 2010 @ 11:40 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
 PREVIOUS POSTS
Waving the White Flag on Tax Hikes
Existing home sales fell 5.1% in June
Housing starts declined 5.0% in June
"New Normal" Nowhere in Sight
The CPI fell 0.1% in June
Wesbury 101 - "3 Myths about Consumption and Savings"
Industrial production increased 0.1% in June
The Producer Price Index (PPI) fell 0.5% in June
Retail sales declined 0.5% in June
The trade deficit expanded by $1.9 billion in May
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011
Expand 20102010

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.