Big in the news yesterday was a huge pop in New Home Sales, which crushed expectations, delivering 539,000 starts (seasonally adjusted annual rate) versus 464,000 expected. Last night, Bespoke Premium and Institutional clients got a full analysis of the New Home Sales print in our nightly recap, The Closer. Included in The Closer were four key charts breaking down the release and putting its details in context. Below, we reproduce one of the key charts. As shown, supply of new homes on the market dropped notably back towards recovery lows. Typically, if inventories are low and falling, one would expect prices to be rising. But the median price of new home sales actually declined significantly month-over-month.
Are falling median new home prices a bad thing? Subscribers can access the report here to find out what drove the decline and what it means for the housing market, as well as the broad economy. We also discussed a surprising development from a less-commonly watched CPI series that showed a surprising signal following yesterday’s CPI report and gave a recap of the daily price action across asset classes. Not a subscriber? Sign up for a free five day trial here to view our analysis of the housing market and CPI in The Closer.