Updated Apr 13, 2022
What is home sales data in USA?
What is home sales data in the USA?
The home sales data in the USA consist of existing home sales and new home sales data. Both of these are released monthly around the same period. The articles share details about their definition, importance and sources.
What are new home sales data?
New home sales or new residential sales refers to a monthly published economic indicator by the U.S. Census Bureau. It evaluates newly built house sales. The home can be at any construction stage (under construction, yet started or completed). It is usually released slightly earlier than existing home sales and causes more impact as both reports are closely related.
New home sales are considered to be a lagging indicator of demand for real estate. Thus, it acts as a factor influencing mortgage rates. Variables like unemployment, household income and interest rates are a few of its drivers.
It is published by U.S. Census Bureau in two versions: Adjusted figure ( published as an annual total) and non-adjusted ( monthly total).
What are existing home sales data?
The National Association delivers the data of Realtors. The data records details of houses whose sales contract has been completed. It measures the shift in the existing homes' annualised number that were sold a month before. The report helps in gauging the U.S. housing market strength and showcases overall economic strength.
Data sources for new home sales
The new home sales data is sourced by analysing the U.S. Census Bureau's Survey of Construction data and conducting home-builders' interviews. It covers data on issued building permits for all the new home construction projects. A new home building is added to the measure in case a fund deposit for that particular home purchase has been already made. Also, if purchasers have signed the purchasing contract for the home within or next year of starting its construction, then the data will be added for the evaluation as well.
Data sources of Existing Home sales
The Metropolitan Median Home Prices and Affordability tend to publish statistics every quarter. Different price reports showcase the sales prices for existing co-operative homes, single/family homes, and condominiums by MSA ( metropolitan statistical area). A qualifying income report is released quarterly to declare the needed income for buying a mid-priced existing single-family home in every metro region.
Data sources to measure the whole housing market in the USA
Several reports are used for analysing the housing market data in the USA. These reports measure the different housing market aspects and provide information on regional trends and buyers' activities.
Let's see to them:
- The Pending Home Sales Index (PHSI)
Similar to new home sale data, the Pending Home Sales Index can be considered a precursor of housing demand burgeoning. Every month this report is released in the first week. It evaluates housing contract activity. The index basis is based on signed real estate contracts for existing co-ops properties, condominiums and single or family house buildings.
- The Housing Affordability Index
This index shows whether a typical family gets adequate income to qualify for the mortgage loan at regional and national levels on an average home. It depends on the most recent income data and monthly price.
- The REALTORS® Affordability Distribution Curve and Score
It evaluates the affordability of housing at various income percentiles considering every active inventory within the market. The curve indicates the number of houses affordable to households as per their income in every state. At the same time, the score displays the affordability of multiple income percentiles under a single measure.
- Monthly Mortgage Payment and County Median Home Prices
This report shows the median home values for up to 3119 county-equivalent/counties in the USA. The measurement is done by lending a comparison of house price index growth from the FHFA ( Federal Housing Financing Agency).
Its calculation comes from comparing the House Price Index growth from the recent housing data by the community survey to Federal Housing Financing Agency (FHFA). The home values showcase the value of every home aside from the value of home sales.
Conclusion
Home sales data indicates the growth or declination of the housing and real estate market in the USA. It helps to measure the contribution of the housing sector to the economic growth of the country.