Very Positive Headlines on New Home Sales Data:
- US sales of new homes rebound strongly in March, most in 13 years (CBS)
- Sales of New Homes and Durable Goods Orders Rose Sharply in March (NYTimes)
- New Homes Sales Spike Unexpectedly (Fox News)
- Factory orders, new home sales up in Mar (Business Week)
- March durables orders, new home sales surge (Reuters)
- US March new home sales up stunning 13.8% - UPDATE 2 (
- March New-Home Sales Strong (TheStreet.com)
- New Home Sales Booming Again (
- New home sales blow lid off expectations (United Press International)
- New-home sales soar, prices slump
(Bizjournals.com) New Home Sales Rebound, Prices Cut (Smart Money)
- March new home sales leap, but prices fall (ABC News)
- US March new home sales leap, but prices fall (Rueters)
Did the headlines in the media properly reflect the significant information from the new home sale report?
The headlines by the media failed to capture the main points of the new home sales report. Here is why:
- Sure, seasonally adjusted new home sales increased by 13.8 from February 06. However, this was still down 7% from March 2005.
- "The median new home price slipped 2.2 percent from a year earlier to $224,200, the first year-over-year decline since December 2003, the Commerce Department said"
- "The 555,000 units of inventory is another all time record for new houses for sale. On a months of supply basis, inventory is significantly above the level of recent years." [Calculated Risk]. Up 25% from March 2005 when inventory was 441,000.
The real news is that the year over year (YoY) numbers for both the number of sales and median sales price declined. Additionally, inventory of unsold new homes increased 25% YoY from March 2005.
All, this leaves aside the whole question of the value of the initial housing numbers from the Census Bureau as they have large amounts of uncertainty which the Census Bureau readily admits. The revised are much more trustworthy.
Housing Panic also takes the media to task