SALES CONTINUE TO TREND MODESTLY HIGHER

New Home Sales Thursday December 27, 2012

20 400

10 Monthly % Change 350 0 300 -10

Monthly % Change Sales (Thousands of Units)

Thousands of Units

-20 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12

250

Record High: 1389k (07/05)

Percent Change from Record High: -72.9%

New home sales increased 4.4% in November to an annual rate of 377k slightly missing economists expectations for a bigger increase to a rate of 380K. A small drop of 0.3% in October was downwardly revised to a 3.5% decline. Because new home sales are counted when sales contracts are signed, these data reflect current sales activity. New home sales are now 15.3% above their year ago level and continue to trend modestly higher. Regionally, sales were mixed with a 21.1% surge in the South and a 12.5% increase in the Northeast. New home sales plunged 17.8% in the West and were down 12.5% in the Midwest. The inventory of new homes available for sale rose 1.4% last month to 149k which represents a 4.7 month-supply at the current sale pace. New home inventories remain quite lean and the month-supply remains well below its long term average of 6.6 months. Home prices rose in November from November one year ago with the median price for a new home up 14.9% to $246,200 as average prices gained 19.9% to $299,700. Over the past 18 months new home sales have been gently rising from a very low level. Recent signs of life in homebuilder sentiment and new construction starts combined with record low inventories suggest new home sales will end the year on a solid note and continue to move up next year. THOUSANDS OF UNITS
Forecast: Consensus*: Actual: 365k 380k 377k Monthly Nov-12 377 4.4 27 12.5 49 -12.5 218 21.1 83 -17.8 149 4.7 246.2 14.9 299.7 19.9 Oct-12 361 -3.5 24 -27.3 56 51.4 180 -13.5 101 5.2 147 4.9 237.5 5.6 272.2 5.4 Sep-12 374 1.9 33 17.9 37 -30.2 208 13.7 96 -6.8 145 4.7 252.1 16.2 293.3 14.8 Aug-12 367 0.3 28 -3.4 53 -1.9 183 1.7 103 0.0 143 4.7 253.2 15.3 305.5 17.8 Three Month 371 Six Month 368 Twelve Month 361 Average for 2011 307 -4.5 21 -30.4 45 1.5 168 -2.4 72 -2.4 152 6.6 224.3 1.4 263.4 -3.0 2010 321 -14.2 31 -2.4 45 -17.8 173 -14.5 74 -15.4 190 8.0 221.2 3.1 271.5 1.2 Five Year 451 Ten Year 785

New Home Sales (percent change) Northeast (percent change) Midwest (percent change) South (percent change) West (percent change) Inventory Months of Supply Median Sales Price ($000) (year-on-year % change) Average Sales Price ($000) (year-on-year % change)

28 47 202 93

26 50 193 99

27 49 191 93

37 66 243 105

55 128 394 207

147 4.8 245.3 12.1 288.4 13.3

145 4.8 243.2 8.4 287.5 10.1

146 4.9 237.9 5.2 281.7 6.0

285 8.5 226.8

360 6.6 220.6

280.2

273.5

Source: Bureau of the Census, Department of Commerce Via Haver Analytics. Data, graph & table courtesy of Insight Economics *Bloomberg 2012 Economic Focus, Inc.| http://www.economicfocus.com | All rights reserved. Reproduction and/or redistribution are expressly prohibited. Hot Sheet is a registered trademark of HousingMatrix, Inc. Information contained herein is based on sources believed to be reliable, but accuracy is not guaranteed.