The New Home Sales is an economic indicator circulated monthly by the United State Census Bureau that measures the sale of freshly constructed homes in the United States of America. Figures are stated as seasonally adjusted annual rates and unadjusted monthly rates.
The New Home Sales observed as a lagging economic indicator of real estate market demand that is closely monitored by the investors. It is determined by factors such as interest rates, unemployment and household income.
The data of New Home Sales and other interior metrics such as interest rate are carefully observed by the investors and market participants as variations can be predictive of extensive movement in the economy such as the beginning of economic recovery or onset of the recession.
The New Home Sales is measured by looking at the figure of the United State Census Bureau, Survey of Construction and conducting interviews of home-builders. A newly constructed home is included in the report if payment was made for the buying of that home, or if the agreement to buying the house was signed within the year of its construction.