Wednesday, September 25, 2013

New Home Sales Increased 7.9% in August

New home sales increased to an annual pace of 421,000 units in August. The pace is 7.9% above the previous month’s pace, which was revised down. However, July’s pace was the worst all year, and the increase comes from depressed levels and does not offset July’s losses. August’s pace is still the second slowest all year and indicative of a summer slowdown. August’s pace is 1.9% above year ago levels. By comparison, June’s report was 38% higher than the year-ago pace.

The modest gains in August were fairly broad, with only one of the four regions reporting slower new home sales. However, all four regions saw declines the previous month, with three of the four posting double digit declines. The Midwest and South posted the strongest gains at 19.6% and 15.3% respectively. The Northeast grew 8.8%. The West declined by 14.6%, which also saw the steepest decline the previous month.

As home sales picked up over the month of August, the supply of homes shrank to 5.0 months, from 5.2 months in July.

The median price of a new home rose 1.9% to $258,000, up from downward revision to July. Although the median price is slowly improving, it’s below the peak of $275,100 in April.

Read the Census report.

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