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What are the key differences between home sales and new homes sales in the USA?
New home sales typically lead existing home sales by a month or two due to the difference in contract signing and completion dates.
The median sales price of an existing US home in fall 2021 was $354,000, versus $400,000 for a brand new home, according to Zillow.
Existing homes account for more than 90% of total home sales, with the monthly data capturing completed transactions.
New home sales are significantly different from existing home sales, which refer to the transaction of previously owned homes.
New homes are often subject to builder incentives and tax benefits not available on existing homes.
The new home sales report measures changes in how many newly constructed residential houses are being built in the United States.
The Census Bureau gathers new home sales data by looking at the number of new houses sold, the number of houses on the market, and the median and average sales prices.
New homes usually go through a lengthy construction process, which can take several months to complete.
The sale of a new home is often finalized after the sale of an existing home has closed.
The ratio of existing-to-new home sales rose from 6-to-1 before the 2008 housing bubble burst to 14-to-1 in 2011.
Since 2011, construction of single-family homes has increased, while foreclosure sales have decreased.
New home sales are an economic indicator that measures the annualized number of new single-family homes sold during a month.
The real estate market is heavily influenced by new home sales, with new home sales reports providing insights into the housing market's sales volume.
New home sales are released by the US Department of Commerce's Census Bureau, and include quantity and price statistics.
The National Association of REALTORS (NAR) surveys a representative sample of 160 Boards and MLSs, which account for approximately 40% of all existing-home sales, to gather data on existing-home sales.
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