Friday, June 7, 2013

New home sales in West region hit six-year high in April

New single-family home sales in the U.S. West were up 30 percent from April 2012 to April 2013, coming in at 13,000 new homes for April 2013, which was the largest number of new home sales in any month since September 2007. April's total was also the highest total for any April since 2008 . 

The first graph shows monthly new home sales totals for each month since 2003. 2012 was clearly the most active year since 2009, and 2013 is looking to be the most active year since 2008. 

The second graph shows new home sales divided out by month. April's total was a six-year high for the month. For the West region: 

The number of new homes for sale began to finally inch up a bit in March and April following  along flat period. There were 38,000 new homes for sale in the West region during April, compared to 30,000 for sale during April of 2012. That's a26 percent increase. 

As a final note, we can also look to the new home inventory. In this case, we calculate inventory by subtracting the number of new home sales in a given month from the number of new homes for sale at the end of the previous month. We see in the graph that the inventory bottomed out in 2012, but has come up a little over the past 4 or 5 months. Nevertheless, inventory in new homes remains very low. 

For a longer historical perspective, see here