Newly constructed single family homes sold at a seasonally adjusted annual pace of 593 thousand in September, up 3.1 per cent from a downwardly revised August gure, and up 29.8 per cent from September 2015.
US National Home Price Index: August 2016
The Case-Shiller National Home Price Index, released by S&P Dow Jones Indices, rose in August. The index rose at a seasonally adjusted annual growth rate of 7.6 per cent, faster than the 4.9 per cent reported in July. After the deceleration in the beginning of 2016, house prices have accelerated since May due to tight inventory and the increases in existing home sales in the early part of this year.
The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 8.9 per cent in August, after the 5.7 per cent increase in July, confirming the reacceleration in home prices.
US New Home Sales: September 2016
The US Census Bureau and Department of Housing and Urban Development in a joint release Wednesday reported that newly constructed single family homes sold at a seasonally adjusted annual pace of 593 thousand in September, up 3.1 per cent from a downwardly revised August figure, and up 29.8 per cent from September 2015. However, note the monthly data is volatile and September was the lowest point in 2015 and the second highest point in 2016. Year over year growth in the trend in sales was 9.4 per cent. Downward revisions to the July and August figures in no way diminish the upward trend that continues with the September figures.
US New Home Sales, Home Prices: Sept and Aug 2016
The inventory of new single family homes for sale was 235 thousand, essentially flat in recent months after modest gains earlier in the year. Prices for new homes rose 3.5 per cent from August and 1.9 per cent from last September. A flat inventory in an environment of rising sales has put upward pressure on prices but expanding inventory has been a challenge given shortages of developed lots and skilled labour (NAHB). Both sales and inventories remain depressed by historical standards but the level of inventory given the pace of sales is in line with historical norms as builders balance caution and available resources in their efforts to meet expanding demand.