Macro Flash Report

Housing Sales

Takeaway:

Similar to the impact on housing starts, January’s unusually severe winter storms dragged down sales of both new and existing homes. Still elevated mortgage rates and increasing prices will likely stand in the way a surge in sales, but “too-low” existing home inventories will keep the floor for new home sales elevated.

 

New (thousand) & Existing Home Sales (million)

In January, New Home Sales dropped by -10.5% to an annualized rate of 657k from 734k in the previous month, missing the market expected 680k. This marked the lowest level in three months.

Affordability continues to weigh on demand. The S&P CoreLogic Case-Shiller 20-city Home Price Index YoY grew by 4.5% in December, up from November’s 4.3% and above the anticipated 4.4% increase.

Existing Home Sales shrank by -4.9% in January to an annual rate of 4.08m from December’s 4.29m, falling short the forecasted 4.12m. However, annually, sales were 2% higher.