The huge percentage jump is from a downward revision. The Census Bureau revised April from 623,000 units to 580,000 units.

Sales vs Expectations

Mortgage News Daily commented "For the second month in a row, sales of newly constructed homes outdistanced expectations." 

Factoring in the revision, sales beat expectations one month in a row but by a huge margin. 

The Econoday consensus was 636,000 units in a range of 600,000 to 670,000.

Sales by Region

  • Northeast: 32,000 up from 22,000 -6.4%
  • Midwest: 73,000 down from 78,000 +45.5%
  • South: 402,000 up from 349,000 +15.2%
  • West 169,000 up from 139,000 +29.0%


New Home Sales 1963-Present

New Home Sales 2020 May

New home sales are back to a level below that in July 1963. 

Perhaps the best way to look at things is to average things for the year. Jan 774K, Feb 716K, Mar 612K, Apr 580K, May 676K. 

The average for 2020 is 670K, right about where we are now. New homes were thus one of the least Covid-impacted areas. 

From the February 2011 low of 270,000 units it's been a very slow recovery historically speaking.

There is no reason to expect an acceleration now.


December New Home Sales Jump 3.7% From Huge Negative Revisions

New home sales rose a seemingly solid 3.7% to 621K but the reason is suspect: Strong negative revisions in Oct and Nov.

New Home Sales a Bit Short of Expectations, May Revised Lower

New home sales came in at a seasonally adjusted annualized rate of 610,000 units, just short of the Econoday consensus of 611,000.

New Home Sales Bounce 7% in June from Hugely Negative Revisions

New home sales rose 7% but the total fell far short of expectations because of revisions.

New Home Sales Surge, Prices Down, Revisions Negative

New home sales beat economists expectations. But the surge was entirely in the South.