January 26, 2023 15:12 GMT
New Home Sales Continue Broad Stabilisation
- New home sales were modestly stronger than expected in December after taking into account a solid downward revision to Nov, rising from 602k to 616k (cons 612k).
- The revisions leave new home sales having surprisingly increased over the past three months, 8.7% in Oct, 0.7% in Nov and 2.3% Dec.
- They clearly remain depressed but continue to show surprising resilience of late compared to the continued push lower in the much larger existing sales category.
- Relative to 2019, building permits are beginning to close the gap on new sales but they have notably different trends with sales broadly stabilising but permits shifting lower.