NAHB Says More Data Need to Determine Direction of
Washington, DC, August 25—-More data is needed to determine the true direction of the housing market, according to David Seiders, chief economist, National Association of Home Builders.
Discussing the 6.5 percent increase in single-family home sales during July, which were reported yesterday by the Commerce Department, Seiders said, "It is clear that the demand for new homes remains strong, but it should be noted that the Commerce Department’s estimates of monthly home sales are subject to a high degree of sampling variability as well as to substantial revision, especially on a regional basis."
Two of four regions across the country posted increased sales of new homes in July. Sales in the Northeast were up 10.1 percent and sales in West jumped 36.0 percent from the month before. Sales in the South were down 3.5 percent and sales in the Midwest dropped 13.5 percent.
"The report on new homes sales is stronger than other housing data for July, including the report on sales of existing homes and NAHB’s Housing Market Index that’s based on our surveys of single-family home builders," Seiders noted. "Indeed, existing-home sales edged down in July and the component of our builders’ survey that measures current sales activity moved down a bit in both July and early August.
"More data obviously will be required to determine the true direction of the housing market for the remainder of the summer months," Seiders added.
