The Strategist

US new home sales rise better than forecast in December

01/27/2022 - 08:56

New home sales in the US rose 11.9% in December from the revised November figure to 811,000, data from the US Commerce Department's Census Bureau showed.

Public Domain Pictures
Public Domain Pictures
Analysts polled by DailyFX expected the figure to rise to 760,000 from the previous month's initial level of 744,000. The November figure was revised up to 725,000.

Compared to December 2020, when sales stood at 943,000, the month under review saw a 14% decline.

New Home Sales is an important indicator of the health of the real estate market and the economy as a whole. Its increase leads to higher spending by new homeowners on furniture and utilities, which in turn stimulates demand for goods, services and labour. In addition, more than half of all construction in the US is residential. Thus, the dynamics of residential real estate sales are passed down the chain to other sectors of the economy.