New Home Sales Cross Half-Million Mark; 1st Time in 6 Years

There was a significant jump in new home sales inrnAugust as the seasonally adjusted rate broke through the half million mark forrnthe first time since May 2008.  ThernCensus Bureau and the Department of Housing and Urban Development said thisrnmorning that sales of newly constructed single-family homes were at arnseasonally adjusted rate of 504,000 units, an 18 percent increase from sales inrnJuly. Economists surveyed by Reuters expected only 430k units.</p

The August rate of sales is 33.0 percent higher thanrnthe estimate of 379,000 homes reported for August 2013. The July rate of salesrnwas revised from 412,000 units to 427,000 units which would have made the Julyrnrate an 8,000 unit increase over June rather than a decrease as previouslyrnnoted.  </p

On a non-seasonally adjusted basis there were 41,000rnnew homes sold during the month compared to 38,000 in July and 31,000 one yearrnearlier.</p

The median price of a new home sold in August was<b$275,000 and the average price was $347,900. rnIn August 2013 the average and median sales prices were $255,300 andrn$310,800 respectively.</p

At the end of the reporting period there were anrnestimated 203,000 new homes for sale, a 4.8 month supply at the current levelrnof sales compared to a 5.6 month supply in July.  This is the first time since last Octoberrnthat the inventory has dipped below a 5 month supply.  Homes that sold in August were on the market arnmedian of 3.3 months.</p

New homes sales increased month over month in everyrnregion but the Midwest where they were unchanged from both July and from onernyear earlier.  Sales were up in thernNortheast by 29.2 percent while remaining 3.1 percent below sales a year earlier.  In the South there was a gain of 7.8 percentrnmonth-over-month and 27.2 percent year-over-year.  There was a huge jump in sales in the Westrnwhere seasonally adjusted monthly sales were up by 50 percent and the annual raternincreased 84.3 percent.

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