fstop123/E+ via Getty Images
After a positive January, the market capitalization for new homes sales in the U.S. dipped ever so slightly in February 2022. Political Calculations’ initial estimate of the overall market capitalizaton of the U.S. new home market is $27.47 billion, holding essentially flat with respect to January 2022’s revised estimate of $27.49 billion for the rolling 12 months average.
U.S. Census Bureau, U.S. Bureau of Labor Statistics, Author’s Calculations
February 2022’s barely noticeable dip is the result of downward data revisions in previous months. The month itself was one of the strongest in the past year, seeing both rising average prices and the number of sales. The following two charts visualize the trailing twelve-month averages of the U.S. new home market’s underlying annualized sales and average price data.
New home sales rose in February 2022:
U.S. Census Bureau, Author’s Calculations
New home prices continued escalating:
U.S. Census Bureau, Author’s Calculations
New home sales are counted toward GDP when their sales contracts are signed, so a flat or falling trend in the market cap for new homes represents an economic headwind for the U.S. economy. According to the National Association of Home Builders, new homes sales average roughly 3% to 5% of the nation’s GDP.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Be the first to comment