Macroeconomic statistics uses two main types of accounting for the volume of real estate sales: direct-sales of new / secondary housing, and indirect-construction costs.
New and Existing Home Sales - sales of primary and secondary homes-equivalent indicators confirming the synchronization of economic growth with an increase in the welfare of the population, characterizing the social policy of the state, as well as confirming or refuting the acceleration of inflation.
Construction Spending is a local economic indicator of the United States, indicating the total amount of commercial and federal, state expenditures on the construction of residential and non-residential stock.
Indicator of the number of new buildings sold in the USA
The number of new buildings sold in the United States, taking into account the size of the US economy and the availability of Treasury debt securities and the national currency in the gold and foreign exchange reserves of countries, indirectly affects the world economy and the Forex market.
The indicator for secondary sales is compiled and calculated by the National Association of Realtors (NAR), which collects data on States united in four major regions. Despite the monthly publication, real data on houses that have changed owners may lag by 30-60 days due to a long mortgage registration.
Primary sales are managed by the State Census Bureau – the indicator is more accurate, since the data is recorded at the time of signing the contract. The statistics may include sales in homes at the resolution stage - such transactions are allowed by law. However, in the case of subsequent termination of the contract, this housing is not excluded from the statistics, but gets there a second time when the developer renegotiates this contract, finding another buyer.
Both indicators are released monthly after the 20th day at 10-00 North American time, approximately on the same day. Thus, traders immediately receive advanced and delayed (sales of "secondary" two months ago) indicators for real estate transactions.
The Census Bureau releases an adjusted indicator for new building sales once a year, which "removes" the impact of seasonal fluctuations and changes in mortgage rates.
Construction costs in the United States
Construction costs in the United States are calculated by the Census Bureau according to the provided estimates of developers, as the sum of all costs for materials, salary costs, project development and any additional costs associated with the construction of the object.
The amount also includes the contractor's profit, tax costs and interest on loans. The data are entered into a special statistical database, which has been maintained for 50 years.
The indicators are published monthly and contain two figures-preliminary and final costs, which play the role of a leading and lagging indicator for 2 months.
In May, the agency issues an adjusted indicator value based on the average readings for 28 months, taking into account seasonal factors and changes in interest rates.
Features of taking into account the readings of real estate indicators in the Forex market
The indicators of sales in the real estate market are considered to be lagging, given their strong reaction to the level of mortgage rates and the relationship between the growth in the volume of real estate purchases, which indicates the optimism of consumers and an increase in the level of well-being of the population.
The indicators are published in millions of units, calculated according to the principle: one buyer – one real estate object (house /apartment). Prior to the release of these values, traders have access to the previous data for the month and analysts ' forecasts.
- The currency's growth is based on a positive discrepancy between the values of real sales and forecasts
- The fall of the national currency may cause sales volumes below analysts ' expectations, reinforced by their reduction compared to the previous month
Height currencies occurs on a positive discrepancy between the values of real sales and forecasts.
The fall in the national currency may cause sales volumes below analysts ' expectations, reinforced by their reduction compared to the previous month.