New Home Sales and Recessions: Part II

The following graph is an update to my previous post and includes the data for February. Its important to note that New Home Sales data can be heavily revised and February is just one data point.


Click on graph for larger image.

The white periods are recessions as defined by NBER. The New Home Sales economic indicator is now flashing yellow.

I'd be very concerned if New Home Sales fall below about 1.05 million units annual rate for several months.