Forecasting New Home Sales in US

Forecasting New Home Sales in the US requires analyzing a blend of factors: Economic indicators like interest rates, employment levels, and overall economic health play a pivotal role, as do demographic shifts including population growth and urbanization trends. Policy decisions, encompassing government housing initiatives, zoning laws, and monetary policy, significantly influence market dynamics.

< 1 mins

Time taken to
identify most
relevant indicators

21+

Relevant
leading
indicators

80%

MAPE
forecast
accuracy

*Indicio captures the group effect of the leading indicators, the relevance ranking of each indicator changes over time.
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Here are the leading indicators identified using Indicio:

Main variable:
United States, New Home Sales, Total, AR, SA
Indicator name Influence
United States, Construction Spending, Total, Current Prices, AR, SA, USD ⭐⭐⭐⭐
Consumer Price Index for All Urban Consumers: All Items in U.S. City Average, SA ⭐⭐⭐
CBOE Volatility Index: VIX ⭐⭐
New Privately-Owned Housing Units Started: Single-Family Units, SAAR
United States, Building Permits, Total
United States, New Home Sales, For Sale at the End of Period, Total
Google trends: House price index, US
United States, New Home Sales, Total
New Privately-Owned Housing Units Under Construction: Total Units, SA
New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units, SAAR
United States, Building Permits, Total, AR, SA
Monthly Supply of New Houses in the United States, SA
United States, Pending Home Sales, United States, AR, SA, Index
NASDAQ Composite Index
United States, Business Surveys, National Association of Home Builders, National Association of Home Builders / Wells Fargo
United States, Investment Account, Change in Private Inventories, Overall, Total, Constant Prices, AR, SA, USD, 2012 Chained Pr
United States, Existing-Home Sales, Single-Family and Condos, Total, AR, SA
Google trends: house for sale, US
United States, Housing Starts, Total, AR, SA

Top indicators identified

United States, Construction Spending, Total, Current Prices, AR, SA, USD

This variable represents the total construction spending in the United States, measured in current prices and expressed in U.S. dollars. The data is seasonally adjusted (SA) and presented as an annual rate (AR), reflecting the value of construction work done over a given period.

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Consumer Price Index for All Urban Consumers: All Items in U.S. City Average, SA

CPI measures the average change in prices over time. This index reflects the overall cost of living and is seasonally adjusted (SA) to account for predictable fluctuations, providing a clearer view of underlying inflation trends. The CPI-U is widely used as an economic indicator to gauge inflation and adjust income payments, such as Social Security.

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CBOE Volatility Index: VIX

The CBOE Volatility Index (VIX) is a real-time market index that represents the market's expectations for volatility over the coming 30 days. Often called the "fear gauge," the VIX is calculated using the prices of S&P 500 index options and reflects investor sentiment. A higher VIX indicates higher expected volatility, while a lower VIX suggests calmer market conditions.

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