New Homes Sales in November rose and December Consumer Sentiment rose
December 23, 2016
The Commerce Department reported that New Home Sales in November rose 5.2% from October to an annual rate of 529,000, the highest rate in four months. The 529,000 was above the 573,000 expected and up 16.5% from November 2015. Sales were unchanged in the Northeast and jumped 43.8% in the Midwest, highest since October 2007. Sales declined 3.1% in the South, but rose 7.7% in the West to their highest level since January 2008. The inventory of new homes stands at a 5.1 month supply, just below the 6.0% that is considered a healthy balance between supply and demand.
The final reading on December Consumer Sentiment rose to 98.2 as the euphoria from the presidential election continued to lift the spirits of consumers around the country. The 98.2 was a 14-year high. The survey revealed that an all-time record number of consumers (18%) spontaneously mentioned the expected favorable impact of Trump’s policies on the economy. In addition, consumers anticipated that a stronger economy would create more jobs, although expected wage gains were quite meager.