Softer prices are giving a lift to new home sales which jumped 7.9 percent in August to a nearly as expected annual rate of 421,000. Downward revisions, though modest this time around, appear for the third month in a row and include a 4,000 downward revision to July to 390,000 in a month that shows a 14.1 percent plunge compared to June (revised 1,000 lower to 454,000).
New homes are coming into the market and likely contributed to another dip in the median price, down 0.7 percent in the month to $254,600 which is the fourth monthly decline in a row. The year-on-year rate for the median price is up only 0.6 percent and is down from high single digit to low double digit gains earlier in the year.
The number of new homes for sale rose 6,000 in the month to an adjusted 175,000 but supply relative to sales, given the August jump in sales, slipped to 5.0 months from 5.2 months in the very soft sales month of July. But supply is up relative to June's 4.3 months and to low 4 month readings earlier in the year and against 4.6 months in August last year.
Regional sales data show strong gains in the Midwest and South and also the Northeast. Sales in the West fell sharply.
The new home market has been bumpy this year but appears to be oscillating higher. Despite higher mortgage rates and still soft jobs growth, confidence in the market, as expressed by home builders in the housing market index, is very strong. The Dow is moving slightly lower in initial market reaction to today's report.
Source: Bloomberg
New homes are coming into the market and likely contributed to another dip in the median price, down 0.7 percent in the month to $254,600 which is the fourth monthly decline in a row. The year-on-year rate for the median price is up only 0.6 percent and is down from high single digit to low double digit gains earlier in the year.
The number of new homes for sale rose 6,000 in the month to an adjusted 175,000 but supply relative to sales, given the August jump in sales, slipped to 5.0 months from 5.2 months in the very soft sales month of July. But supply is up relative to June's 4.3 months and to low 4 month readings earlier in the year and against 4.6 months in August last year.
Regional sales data show strong gains in the Midwest and South and also the Northeast. Sales in the West fell sharply.
The new home market has been bumpy this year but appears to be oscillating higher. Despite higher mortgage rates and still soft jobs growth, confidence in the market, as expressed by home builders in the housing market index, is very strong. The Dow is moving slightly lower in initial market reaction to today's report.
Source: Bloomberg
