Fractal analytics forex
The figure is a timely gauge of housing market conditions counting home sales when initial housing contracts are signed. Because New Home Sales usually trigger a sequence of consumption, they have significant market impact upon fractal analytics forex.
In addition to the high expenditure of the new home, buyers are likely to spend more money on furnishing customizing and financing their home. Consequently, growth in the housing market spurs more consumption, generating demand for goods, services and the employees who provide them.
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Generally, the housing market is tracked by a number fractal analytics forex reports that mark different stages of the construction and home sale process.
As the headline housing figure, New Home Sales are believed to control some of the volatility of other data.
For instance, Building Permits and Housing Starts are considered more indicative of business confidence and production rather than consumer spending.
And while Existing Home Sales figures are more indicative of consumer expenditures, they are lagging indicators with less predictive value.
New Home Sales numbers are considered confirmatory of housing trends and still predictive of consumer spending. New Home Sales is also a good indicator of economic turning points due to its sensitivity to consumer income.
Buying a house is always a major expenditure, typically only undertaken when consumers have sufficient savings or are optimistic about future earnings. Historically, when economic conditions slow, New Home Sales are one of the first indicators to reflect the change.
By the same token, New Home Sales undergo substantial growth when the fractal analytics forex has emerged from recession and wages have begun to pick up.
The report headline is the total amount of properties sold.