When we first set out and launched out Bespoke Consumer Pulse report two years ago, the goal was to survey thousands of US consumers in order to get an accurate read on trends in the US economy, US consumer stocks, and the financial markets. But to this day, we are still amazed at how often an economic report or earnings report is released and it confirms what we already knew based on the results of our surveys. Tuesday’s report on US New Home Sales was just another example. Check out the details below.
New Home Sales: Tuesday’s new home sales numbers grew at its fastest pace since January 2008. The Commerce Department said purchases of new, single-family homes increased 16.6% from a month earlier while the median price of a new home increased to $321,100, which is up 9.7% from a year ago and the highest level on record. The report also showed that inventories of new homes declined in April. This is a major contributor to the increase in price, and also bad news for potential new home buyers.
May Consumer Pulse Results: April’s strength in new home sales came as little surprise based on the monthly Bespoke Consumer Pulse report. According to our April report (released in early May), the highest number of respondents (8.5%) in our survey’s history reported they are either “likely” or “very likely” to purchase a home in the next year. Although there is some seasonality to the time series, we continue to believe that demand for housing in the US will remain strong as the trend is clearly higher. Based on the overall seasonal patterns, this series typically peaks in May or June and tends to bottom towards the end of the year.
So why are so many Americans looking to buy a house with prices higher than ever and a shrinking pool of homes to buy from? Our Consumer Pulse report has also indicated that Americans are the most satisfied with their personal finances relative to a year ago in our survey’s history. Our monthly tracker had a weighted average reading of 3.08 in April- its largest sequential gain on record and just above the previous high. In short, people have the perception of more cash in their pockets and are much happier to spend it on, say, a new home.
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