Census New Home Sales

Census New Home Sales

Census new home sales is an important economic indicator that measures the sales volume of new single-family homes in the United States. This statistic is published monthly by the U.S. Census Bureau and is expressed in units of thousands of homes on a seasonally adjusted annual rate (SAAR). This indicator counts the number of new home sales where contracts have actually been concluded, with the distinctive feature that it is measured at the stage before construction completion.

There are multiple reasons why this indicator is important. First, new home sales function as a leading indicator for the construction industry and related industries, and are useful in forecasting overall economic trends. Home purchases are large-ticket consumer expenditures and reflect consumers' economic outlook and purchasing power. Furthermore, the industry has large ripple effects including job creation in construction, demand for construction materials, and related consumption such as furniture and appliances. The impact of financial policy is also directly reflected, and the indicator is closely monitored to measure the impact of interest rate changes on the housing market.

As a general trend, sales volumes tend to decline during periods of rising interest rates and increase during periods of falling rates. Fundamental factors such as population trends, employment conditions, and consumer sentiment also have significant influence. Because seasonal fluctuations are substantial, publication on a seasonalized annual rate (SAAR) basis enables month-to-month comparisons. Market analysts focus on month-over-month and year-over-year percentage changes as material for judging the strength or weakness of the housing market.