This indicator is sometimes referred to as New Singly-Family Houses Sold. Interviews of about owners of about 15,000 or 10,000 builders of selected building projects are the bases for it. It shows the number of newly constructed homes that were sold during the month.
It helps to measure the demand for housing as well as the economic momentum. Buying a house means that people feel pretty comfortable and confident in their own financial position. Actually, this narrow piece of data has a significant effect through the economy, and therefore across your investments and the markets. Tracking economic data such as new home sales helps the investors to gain specific investment ideas and provides them with a broad guidance for managing a portfolio.
The construction of a new home requires a lot of construction jobs, and income of those jobs will be returned into the economy. Homebuilder and the realtor gain their profit when the house is sold. Purchasing a house brings provides buyer with a great variety of consumption opportunities. Furniture and home appliances, such as washers, refrigerators and dryers and are just a few items new homebuyers might purchase. A hundred thousand new households that appear around the country every month multiply the economic “ripple effect”. The market effect of the report is usually insignificant. Existing home sales report, which has a sample data pool four times as large and is released earlier in the month, is much more popular.
