New Home Sales Nationwide Falling, Agriculture Watching Closely

WASHINGTON, DC – New single-family home sales fell to a seasonally adjusted annual rate of 694,000 in December, according to the U.S. Census Bureau and the Department of Housing and Urban Development. The December level is 0.4 percent below the revised November rate of 697,000 but is 23 percent above the December 2018 estimate. Sales declined in two of the four regions as the Northeast and South saw decreases of 11.8 percent and 15.4 percent, respectively. New home sales in the Midwest and West increased 10.1 percent and 31.0 percent respectively. The median price of a new home was $331,400. The average price was $384,500. At the end of December, the seasonally adjusted estimated supply at the current sales rate was at 5.7 months according to the American Bankers Association (ABA). Agricultural economists are watching the trend closely for leads on what the general economy, and demand for ag products, might hold later in the year. On Wednesday, the Federal Reserve announced a hold on current interest rates explaining that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a moderate pace, business fixed investment and exports remain weak. On a 12‑month basis, overall inflation and inflation for items other than food and energy are running below 2 percent.