REK

U.S. New Home Market Cap Highest Since August 2006

Based on the latest sales data reported by the U.S. Census Bureau, the preliminary nominal estimate of the market capitalization for new homes was $30.6 billion in August 2020.Perhaps more remarkably, the median sale price of new homes sold in the U.S. fell to an initial estimate of $312,700 in August 2020.With the trend for the sale prices of new homes generally flat to slightly falling over the last two years, the only way the market cap of new homes could increase is because of rising sales volumes.

August New Home Sales Confirm That The Long Leading Housing Sector Has Been Surging

Housing is a long leading sector of the economy, typically giving us information 12 to 18 months into the future.New home sales are the most leading of all housing metrics, but are very volatile and heavily revised.August new home sales hit the highest level in nearly 15 years.Because they confirm the surge in the less volatile single-family housing permits, the new high is almost certainly a signal rather than a noise, a powerful plus for the economy in 2021.

More Economic Recovery Lies Ahead

Trends In Housing Supply

Equity REIT Performance In A Nutshell: Week 31

New Home Sales A Bright Spot For U.S. Economy

CMBS In The Eye Of The Storm

Income Assets Are Down But Not Out