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By: Stuart Cowell
US new home sales dipped -0.4% in December to a 694k pace, after November’s revised -1.1% drop to 697k (was 719k). October was bumped down to 705k, versus 710k. This is the lowest since July. Sales were at a 564k rate last December. Regionally, sales declined in the Northeast and South, and rose in the Midwest and West. The month’s supply of homes rose to 5.7 from 5.5 (revised from 5.4). The median sales prices increased 3.3% to $331,400 after November’s -0.8% slide to $320,900 (revised from $330,800). That’s a +0.5% y/y clip versus 4.0% y/y in November (revised from 7.2% y/y). The drop in sales and downward revisions are a disappointment. Housing was a significant plus point for the US economy in 2019.
US equities are sharply lower, following on the heels of the plunge in stocks globally on heightened worries over the spreading coronavrius and concern about slowing global economic growth. The USA100 trades 1.76% lower at 9150, the USA500 is 1.41% lower at 3249 with the USA30 is down over 400 points (1.4%) at 28,586, from the breach of the 200-period moving average on Fridays close.
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