New Home Sales indicator shows the number of single-family homes that were sold during the previous month. It is being released as an annualized number, so basically the monthly number is multiplied by 12.
It represents a first tier data as market participants are highly sensitive to anything that is related to the housing market and big differences between the actual and the forecast number are usually accompanied by high volatility levels and this is something every traders wants.
Looking at the six months worth of data we are analyzing, from February 2013 until July 2013, there is a clear uptrend from April until July, and if this trend continues it signals a strong pick up in the sector and it should be viewed with positive effects on the GDP release later in the month.
The most important things to take into consideration when looking at the New Home Sales indicator are the following:
- release date: monthly, around 25 days after the month ends;
- release time: 14:00 GMT, during the North American trading session;
- first tier data;
- volatility expected if actual is way different than the forecast number.