New Home Sales Soar To Highest Since July 2007 As Prices Hit Record High

Following a disappointing drop in Existing Home Sales, New Home Sales were expected to buck their recent trend and rebound in January. And rebound they did, jumping a shocking 7.9% MoM (vs +3.5% MoM and a major revision for December from -0.4% to +2.3%)…

The monthly jump is the biggest since June 2019 and the highest SAAR for New Home Sales since July 2007…

Source: Bloomberg

The median sales price jumped 14% from a year earlier to a record $348,200 as more expensive properties made up a larger share of purchases.

Purchases of new homes, which account for about 10% of the market, increased in three of four U.S. regions, led by the Midwest and West.

Of course, with mortgage rates crashing to 8 year lows…

Source: Bloomberg

The supply of homes at the current sales rate declined to 5.1 months, the lowest since November 2017, from 5.5 months in the prior month.