Sales Of New US Homes Fall 11.5% To Rate Of 468,000 In September

Washington (Oct 26)  Purchases of new US single-family homes fell by 11.5% in September to a seasonally adjusted and annualized pace of 468,000, according to a Commerce Department report Monday.

Consensus forecasts compiled by various news organizations called for sales to be around 549,000 to 550,000.

The sales for August were revised down to 529,000 from the originally reported 552,000. While lower than August, the September tally of 468,000 was up 2% from the September 2014 rate of 459,000.

Andrew Grantham of CIBC WM Economics described the report as much weaker than expected.

“The decline in sales appeared to be pretty broad-based across the country and the overall pace was close to the previous YTD (year-to-date) low seen in June,” he said in a research note. “While the latest number was certainly disappointing, the series still appears to be trending broadly sideways since the start of the year.”

The report comes after data from the National Association of Realtors late last week showed that sales of previously owned U.S. homes rose by 4.7% in September to a seasonally adjusted and annualized pace of 5.55 million.

The median sales price of new single-family houses sold in September was $296,000, up from $261,500 in the same month a year ago, the government reported. The average sales price last month was $364,000, up from $319,100 a year ago.

The seasonally adjusted estimate of new houses for sale at the end of September was 225,000. This represents a supply of 5.8 months at the current sales rate.

Source: KitcoNews