Updated: 26-Sep-17 10:44 ET
|Updated: 26-Sep-17 10:44 ET
- New home sales decreased 3.4% month-over-month in August to a seasonally adjusted annual rate of 560,000 (Briefing.com consensus 577,000). New home sales for July were revised up to 580,000 from 571,000.
- Sales decreased 4.7% in the South, 2.7% in the West, and 2.6% in the Northeast. Sales were flat in the Midwest.
- The median sales price for a new home increased 0.4% year-over-year to $300,200
- The available inventory of new homes for sale at the end of August represented a supply of 6.1 months at the current sales rate versus 5.7 months in July, suggesting the new home market has a more balanced supply-demand situation than the existing home market where the available inventory at the end of August stood at a 4.2-months' supply
- The key takeaway from the report isn't that sales declined 4.7% in the South, which was partly impacted by Hurricane Harvey, but that sales declined 2.7% in the West, which wasn't impacted by Hurricane Harvey, after declining 15.3% in July.The weakness in the West could be a function of constraints related to high prices, yet it will need to be watched closely as a potential harbinger of a broader slowdown in the housing market related to affordability constraints.
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