Unexpectedly Intriguing!
July 28, 2020

The U.S. new home market continued to show surprising resiliency during June 2020.

That resiliency came despite the slowing recovery in the U.S., as several states began reintroducing measures to slow the spread of the SARS-CoV-2 coronavirus as they experienced a delayed first wave of infections.

Perhaps the most remarkable aspect of new home sales is that the number of sales has nearly returned to its pre-coronavirus peak in February 2020. The increase of new home sales back to this level in June 2020 can be easily seen in a chart tracking the trailing twelve month average of annualized new home sales recorded in the U.S. from January 2000 through June 2020.

Trailing Twelve Month Average of the Annualized Number of New Homes Sold in the United States, January 2000 - June 2020

At the same time, the average sale price of new homes in June 2020 rose to an initial estimate of $384,700, near the final estimate of $386,200 recorded for February 2020. The resulting combination of rising average sale price and rising number of sales produced an increase in the market capitalization of new homes sold in the United States for June 2020, which can be seen in the latest update to our chart following the actual and inflation-adjusted values of that data from January 1976 through June 2020.

Trailing Twelve Month Average New Home Sales Market Capitalization, Not Adjusted for Inflation and Adjusted for Inflation, January 2000 - June 2020

The economic recovery data for July 2020 has turned downward with the surge of coronavirus infections in large portions of the U.S. that didn't experience a significant first wave. It will be interesting to see if the positive trend for new home sales continues for another month in the face of that adverse trend.

For the sake of closing on a positive note, Reuters provided the following description of the U.S. new home market in June 2020:

Sales of new U.S. single-family homes raced to a near 13-year high in June as the housing market outperforms the broader economy amid record low interest rates and migration from urban centers to lower-density areas because of the COVID-19 pandemic.

... the fundamentals for housing, which accounts for just over 3% of economy, remain favorable. The 30-year fixed mortgage rate is averaging 3.01%, close to a 49-year low, according to data from mortgage finance agency Freddie Mac. There are more first-time buyers in the market, with the average age 47 years....

In June, new home sales soared 89.7% in the Northeast and jumped 18% in the West. They increased 7.2% in the South, which accounts for the bulk of transactions, and advanced 10.5% in the Midwest. The median new house price increased 5.6% to $329,2000 in June from a year ago. New home sales last month were concentrated in the $200,000 to $400,000 price range.

The housing market looks like it will provide the U.S. economy in 2020 with something of a much needed tailwind.


U.S. Census Bureau. New Residential Sales Historical Data. Houses Sold. [Excel Spreadsheet]. Accessed 24 July 2020. 

U.S. Census Bureau. New Residential Sales Historical Data. Median and Average Sale Price of Houses Sold. [Excel Spreadsheet]. Accessed 24 July 2020. 


About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.