Sales of new US single-family homes rose to a six-year high in September, but a sharp downward revision to August’s sales pace indicated the housing recovery remains tentative.
The Commerce Department said on Friday that sales increased 0.2 per cent to a seasonally adjusted annual rate of 467,000 units, the highest reading since July 2008. August’s sales rate was revised down to 466,000 units from 504,000 units
New Home Sales, US
New-home sales, which account for about 7 per cent of the residential market, are tabulated when contracts are signed, making them a timelier barometer than existing homes.
Last month, new home sales fell 8.9 per cent in the West, handing back some of August’s 28.1 per cent surge. In the populous South, sales rose 2.0 per cent, while they increased 12.3 per cent in the Midwest. Sales were flat in the Northeast.
With sales rising modestly, the stock of new houses available on the market rose 1.5 per cent to the highest level since July 2010. Builders have been ramping up construction and the improvement in inventory should provide buyers with more choices and temper house price increases.
At September’s sales pace it would take 5.3 months to clear the supply of houses on the market, unchanged from August. Six months’ supply is normally considered a healthy balance between supply and demand.
The median new home price fell 4.0 per cent to US$259,000 from a year ago.