Close this search box.

Table of Contents

New Home Sales


New Home Sales is an economic indicator that refers to the sales of newly constructed residences or houses in the United States. It is expressed as an annual rate, based on monthly figures, and seasonally adjusted to factor in variations throughout the year. This metric gives economists and investors insight into the health of the economy, as increased house sales often signify a prosperous economy.


The phonetic pronunciation for the phrase “New Home Sales” is:New: /njuː/Home: /hoʊm/Sales: /seɪlz/

Key Takeaways

Sure, here they are in HTML format:“`html

  1. New Home Sales are an important economic indicator that reflects the number of brand new homes sold in a given period. This metric can provide insightful details about the health of the housing market and is highly influenced by the prevailing economic conditions.
  2. The data on new home sales can influence the market greatly. A surge in new home sales suggests increased economic activity in terms of construction jobs, furniture and home appliances sales, and mortgage lending. Consequently, high home sales can lead to higher stock market levels.
  3. However, relying solely on new home sales data can be misleading as it doesn’t account for the sales of pre-owned or existing homes. Therefore, it should be used in conjunction with other real estate market indicators for a holistic assessment of the market.



New Home Sales is a significant economic indicator that is key to understanding the overall health of the economy, specifically the housing market sector. This term denotes the number of newly constructed homes that were sold within a specified period, typically on a monthly basis. A high number of new home sales can reflect economic strength, as it suggests increased consumer confidence, healthy job market, attractive mortgage rates and robust lending activity. Increase in new home sales can drive up demand for construction labor and materials, stimulating employment and industry growth. Conversely, a decrease could signify potential economic downturns. Thus, monitoring new home sales can provide valuable insights for stakeholders from builders to potential home buyers to policy makers and investors to bank officials.


New Home Sales is a crucial economic indicator used by economists, analysts, and investors to assess the health of the housing market and, more broadly, the overall economy. It refers to the annualized number of new residential homes that were sold during a given month in the US. This statistic captures the sales of newly constructed residences, which is significant as the construction of new homes involves a wide range of economic activities, including the purchase of raw materials and the hiring of labor. When new home sales are on the rise, it’s generally an indicator of a flourishing economy as it suggests increased consumer spending and investment.Moreover, the New Home Sales figure helps to indicate the demand level for housing and the consumer’s ability and willingness to buy. Increases in new home sales can lead to higher demand for mortgage loans, which in turn affects the banking sector and interest rates. Simultaneously, elevated activity in this sector also means increased demand for household goods and services, translating into a positive impact on related industries like furniture, appliances, landscaping, and utilities. Therefore, the data the New Home Sales forecast provides is essential for policymakers, market participants, and analysts as they make informed financial and economical decisions.


1. D.R. Horton Inc: D.R. Horton is one of America’s largest homebuilding companies. For example, in their 2021 fiscal year, the company reported 65,388 new home sales contributing to a total revenue of nearly $26 billion. These homes were marketed and sold to buyers in a range of demographic segments from first-time to luxury, showing a real world application of new home sales in a large corporation.2. PulteGroup Inc.: PulteGroup Inc., another large U.S. home construction company, reported that they sold approximately 25,000 new homes in the year 2020. These homes ranged in style, size, and price to cater to a diverse market of homeowners and renters. 3. Lennar Corporation: On a global scale, Lennar Corporation, a leading home construction and real estate company, reported the sale of over 49,000 new homes across multiple markets in their 2020 fiscal year. This shows how the concept of new home sales applies not only within national boundaries but also on a global scale.

Frequently Asked Questions(FAQ)

What are New Home Sales?

New Home Sales refers to the annualized number of new single-family homes that were sold during the previous month in the United States. The data is reported and tracked by the U.S. Census Bureau.

Why are New Home Sales important?

New Home Sales is a crucial economic indicator that helps to assess the health of the housing market and the overall economy. It can have a direct impact on interest rates, mortgage businesses, real estate market, and even home-related retail businesses.

How frequently is the New Home Sales data released?

The New Home Sales data is typically released on a monthly basis by the U.S. Census Bureau.

Who uses the information on New Home Sales?

Economists, financial market participants, real estate investors, government policy makers, and home-related businesses are some of the main users of New Home Sales data.

What factors impact New Home Sales?

Several factors can influence New Home Sales, including economic health, job market conditions, interest rates, and consumer confidence. High interest rates or economic downturn, for instance, could potentially decrease the sales.

How does New Home Sales data affect the economy?

As a leading indicator, high New Home Sales figures often indicate a strong and growing economy whereas declining New Home Sales signal weakening economic conditions. New Home Sales can also impact the GDP as household purchases are a key component.

What is the difference between New Home Sales and Existing Home Sales?

While both are key indicators for the housing market, New Home Sales only counts the sales of newly-built residences. Existing Home Sales, on the other hand, account for a broader range of the market by including sales of previously owned homes.

Can weather conditions affect New Home Sales?

Yes, extreme weather conditions can impact the construction of new homes, as well as the willingness of buyers to venture out and make purchases. Thus, the New Home Sales data can be seasonally adjusted.

Related Finance Terms

Sources for More Information

About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More