Number: New-home sales have increased
New home sales in the United States rose in September, although home prices rose to new heights.
New home sales in the U.S. rose 14% to 800,000 at an annual rate, the government said Tuesday. This statistic represents the number of homes that would be sold over a year if the same number of properties were purchased per month based on the sales rate in September. Compared to a year ago, sales fell 17.6%.
Economists surveyed by MarketWatch had a moderate forecast that new home sales for September would come at an annual rate of 760,000.
The US Census Bureau’s new home sales report, in contrast to the National Association of Realtors’ existing home sales report, where the contract was signed, but the transaction has not yet closed. The small sample size of the report means it is quite volatile and prone to large corrections.
The median selling price of new homes sold in September was 408,800, marking a new record high. The supply of new homes for sale fell by more than 12% between August and September, equivalent to a 5.7-month supply.
Regionally, the Northeast gained the highest percentage of new-home sales, while the Midwest was the only part of the country that recorded a decline, as it had the previous month.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, noted that Americans are seeing “something of a revival in the housing market.” Sales of both new and existing homes have rebounded from the recession earlier this year. A mix of factors can be a game.
“The combination of low rates, easy credit standards and, perhaps, renewed cowardice in cities has driven change, which is likely to continue in October, albeit at a slower pace,” Shepherdson wrote in a research note.
At its last point, rising mortgage rates could put some home buyers on the margins, which could become headwinds for the market in the coming months.
What are they saying
“Significantly, the price of timber has risen above the 400 mark at the bottom of August, to $ 600 per thousand board feet. The increase confirms that home builders have kept prices high, doubling the selling price of medium-sized new homes compared to a year ago, ”said George Ratio, manager of economic research at Realtor.com.
Dow Jones Industrial Average DJIA,
And S&P 500 SPX,
Both indices rose in Tuesday morning’s trading.
Major home-builder stocks, such as DR Horton DHI,
Lenar Corporation LEN,
And PulteGroup PHM,
New home sales have turned positive since the report was released.