WASHINGTON – Sales of new single-family homes rose 4.8% in September, recovering a portion of the ground lost in the previous month, according to data from the U.S. Commerce Department. Sales reached a seasonally adjusted annual rate of 770,000 units, following major downward revisions to figures for the previous three months.
“While tough conditions remain in the nation’s housing markets, home builders are taking decisive action to reduce inventories through special sales incentives and sweetened deals,” said National Association of Home Builders (NAHB) President Brian Catalde, a homebuilder from El Segundo, CA. “We’re pulling out all the stops to entice potential buyers back into the market, and today’s report suggests that those efforts are bearing some fruit.”
“Given the substantial downward revisions to home sales numbers for June, July and August, it must be said that this is still a fundamentally weak report,” said NAHB Chief Economist David Seiders. “Moreover, the large sales gains reported in the West region are highly suspicious, given the results of our own builder surveys and large downward movements in existing-home sales in that region. On the positive side, builders do seem to be making progress on reducing the substantial overhand of unsold units on the market, according to the latest figures.”
The inventory of new homes decreased for the sixth consecutive month in September to 523,000 units. The inventory overhang equates to an 8.3-month supply at the existing sales pace.
More information regarding housing statistics can be found at www.housingeconomics.com.
Have something to say? Share your thoughts with us in the comments below.