New Home Sales Decline in September as Prices Pull Back But Purchases Rise More Than 15% Annually

Press Release
Sales of newly built homes fell in September, according to US government data released Thursday, with prices showing a decline during the month.
New home sales fell 0.7% to a seasonally adjusted rate of 701,000, the US Census Bureau and the Department of Housing and Urban Development said. Sales had been expected at 698,000, according to a consensus estimate compiled by Econoday.

The figure follows August’s downward revision to 706,000, but sales remained above 700,000 for the third time in four months, the data showed. Annually, September sales are up by more than 15%.

“New home sales inched down in September, but the ongoing trend remains positive as builders increase their production,” Greg Ugalde, chairman of the National Association of Home Builders, said in a statement.

The months’ supply of homes was steady at 5.5. Homes for sale dipped to 321,000, the lowest since August 2018, from a downwardly revised 323,000.

Regionally, sales in the midwest rose 6.3% and fell 3.8% in the west. Purchases were also down in the northeast, falling 2.8% while the south was 0.2% lower.

“Sales volume is expected to improve slightly in the coming months as more newly-built inventory arrives,” Jing Fu, NAHB’s director of forecasting and analysis, said in the statement.

September’s report said median sales prices fell 7.9% to $299,400 from the prior revised $325,200. Prices on an annual basis were down 8.8% compared with revised growth of 1.2% in August.

This post was originally published on Health Opinion

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