Updated: 24-Sep-21 10:21 ET
|Updated: 24-Sep-21 10:21 ET
- New home sales increased 1.5% month-over-month to a seasonally adjusted annual rate of 740,000 (Briefing.com consensus 720,000) from an upwardly revised 729,000 (from 708,000) in July.
- On a year-over-year basis, new home sales plunged 24.3%, driven by double-digit declines in all regions.
- The median sales price increased 20.0% yr/yr to $390,900 while the average sales price jumped 14.7% to $443,200.
- New home sales month-over-month/year-over-year by region: Northeast (+26.1%/-37.0%); Midwest (-31.1%/-46.9%); South (+6.0%/-23.0%); and West (+1.4%/-16.3%).
- At the current sales pace, the supply of new homes for sale stood at 6.1 months, versus 6.0 months in July and 3.5 months in August 2020. 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 49% of new homes sold versus 52% in July and 69% one year ago.
- The key takeaway from the report is that new home sales momentum has been slowed by cost constraints that are making it less enticing for builders to build lower-priced homes and by affordability pressures that are making it more challenging for prospective buyers to buy higher-priced homes.
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