Updated: 26-Sep-23 10:39 ET
|Updated: 26-Sep-23 10:39 ET
- New home sales declined 8.7% month-over-month in August to a seasonally adjusted annual rate of 675,000 units (Briefing.com consensus 695,000) from an upwardly revised 739,000 (from 714,000) in July.
- On a year-over-year basis, new home sales were up 5.8%.
- The median sales price declined 2.3% yr/yr to $430,300 while the average sales price declined 3.2% to $514,000.
- New home sales month-over-month/year-over-year by region: Northeast (+6.7%/+18.5%); Midwest (-17.2%/+24.2%); South (-7.5%/-9.2%); and West (-9.4%/+44.1%).
- At the current sales pace, the supply of new homes for sale stood at 7.8 months, versus 7.0 months in July and 8.7 months in August 2022.
- The percentage of new homes sold for $399,999 or less accounted for 40% of new homes sold versus 38% in July and 39% one year ago. Homes priced between $400,000 and $749,000 accounted for 45% of new homes sold versus 52% in July. New homes priced at $750,000 or over accounted for 15% of sales in August versus 10% in July.
- The key takeaway from the report is that new home sales activity, which is measured on signed contracts, is being adversely impacted by high mortgage rates that have hurt affordability.
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