Last Update: 24-Oct-14 10:53 ET
New Home Sales
- New home sales increased 0.2% in September to 467,000 from a downwardly revised 466,000 (from 504,000) in August. The Briefing.com consensus pegged new home sales at 475,000 in September.
- The downward revision to the August sales data was exceptionally large and removed what was thought to have been the best performing sales month since May 2008.
- After increasing 28.1% in August, sales in the West fell 8.9% to 112,000 in September. Sales in the Northeast were flat. Gains were registered in both the Midwest (12.3%) and South (2.0%).
- Inventory levels remain stressed. While the overall size of inventories increased 1.5% to 207,000, the months' supply at the current sales pace was unchanged at 5.3 months. A 6 months' supply is considered normal.
- New home prices fell 4.0% y/y to 259,000. That was the first year-over-year price decline since April, and the largest decline since falling 7.7% in January 2012. The drop in price likely reduced the new home price premium, which would increase affordability conditions for the sector.
- Even after factoring in the large revision to the August sales data, new home demand over the last couple of months as accelerated from its previous flat trend.
|Median Price Y/Y