Last Update: 24-Sep-15 10:21 ET
New Home Sales
- New home sales increased 5.7% in August to 552,000 from an upwardly revised 522,000 (from 507,000) in July. The Briefing.com Consensus pegged new home sales at 515,000.
- That was the most new home sold since 593,000 homes were sold in February 2008. At that time, however, sales were trending down.
- Demand was strongest in the Northeast, where sales increased 24.1%. Sales in the South (7.4%) and West (5.4%) were also positive, while sales in the Midwest declined 9.1%.
- The breakout in August was unexpected. Sales in 2015 had averaged a little over 500,000 homes per month through July and volatility was kept to a minimum.
- The move in August could be a result of buyers being pulled into the marketplace in the anticipation that mortgage rates could increase in the near future. The National Association of Realtors reported that some of the recent gains in existing home sales came from rushed purchases. A similar response in the new home sector is very probable. If this is the case, we would expect to see a payback period develop over the next couple of months.
- Months's supply dropped to 4.7 months in August from 4.9 months in July. A normal market typically maintains a 6-months supply.
- The median selling price increased 0.3% to $292,700.
- While sales are still trending above 2013 and 2014 levels, we haven't seen the clear and steady move higher that would indicate a normalizing market.
|Median Price Y/Y