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New US Home Sales Surge. Average Prices Jump Back Near Record
New home sales in the US soared almost 10% last month, as lower mortgage rates and builder incentives emboldened anxious buyers.
The 683,000 annual rate far outpaced consensus, which was looking for a comparatively tepid 632,000 pace.
The range of estimates, from five-dozen economists, was 550,000 to 708,000.
February's pace was revised lower, January's higher. March's gain was the largest since August and the sales rate was the briskest in a year.
The figures, which are volatile, came on
So what are the inflation adjusted home prices now? If inflation was 6 % in the last 12 months it means real home prices are down about 16% year over year. Its not so surprising nominal prices would stabilize or bounce, especially when mortgage rates dropped recently. My bet is nominal prices won’t change that much over the next 5 years, translating to an inflation adjusted decline.