Updated: 27-Sep-22 10:37 ET
|Updated: 27-Sep-22 10:37 ET
- New home sales surged 28.8% month-over-month in August to a seasonally adjusted annual rate of 685,000 units (Briefing.com consensus 500,000) from an upwardly revised 532,000 (from 511,000) in July.
- On a year-over-year basis, new home sales were down 0.1%.
- The median sales price increased 8.0% yr/yr to $436,800 while the average sales price jumped 11.0% to $521,800.
- New home sales month-over-month/year-over-year by region: Northeast (+66.7%/-21.9%); Midwest (+16.7%/+5.0%); South (+29.4%/+10.4%); and West (+27.5%/-24.0%).
- At the current sales pace, the supply of new homes for sale stood at 8.1 months, versus 10.4 months in July and 6.5 months in August 2021. A six-month supply is typically associated with a more balanced market.
- The percentage of new homes sold for $399,999 or less accounted for 40% of new homes sold versus 34% in July and 46% one year ago.
- The key takeaway from the report is that new home sales were much stronger than expected, aided by a sense of urgency to sign contracts as mortgage rates came down. This strength, however, is apt to be an aberration given the surge in mortgage rates that has occurred in the ensuing period.
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