Briefing.com: New Home Sales

Updated: 24-Oct-24 10:18 ET

September New Home Sales

Updated: 24-Oct-24 10:18 ET

Highlights

New home sales increased 4.4% month-over-month in September to a seasonally adjusted annual rate of 738,000 units (Briefing.com consensus 713,000) from a downwardly revised 709,000 (from 716,000) in August.
On a year-over-year basis, new home sales were up 6.3%.

Key Factors

The median sales price was roughly flat yr/yr at $426,300 while the average sales price declined 2.7% to $501,000.
New home sales month-over-month/year-over-year by region: Northeast (+21.7%; -22.2%); Midwest (-2.5%; +14.9%); South (+5.8%; +14.7%); and West (0.0%; -10.9%).
At the current sales pace, the supply of new homes for sale stood at 7.6 months, versus 7.9 months in August and 7.5 months in September 2023.
The percentage of new homes sold for $399,999 or less accounted for 45% of new homes sold versus 47% in August. Homes priced between $400,000 and $799,999 accounted for 46% of new homes sold versus 45% in August. New homes priced at $800,000 or over accounted for 8% of sales in August versus 7% in August.

Big Picture

The key takeaway from the report is that new home sales, which are tabulated when contracts are signed, likely enjoyed a tailwind from the drop in mortgage rates seen in September ahead of the FOMC decision, but with rates higher now than they were before the September 18 rate cut, it is reasonable to think October new home sales won't look as good.