On October 26, the U.S. Census Bureau reported that sales of new single-family houses in the United States economy increased slightly in September 2016 from August, but they remain well below July’s figures.
In September, the seasonally adjusted annual rate of sales of new homes in the U.S. stood at 593,000. In August, the annual rate stood at 575,000, and in July it was 629,000.
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Looking at sales of new homes from a bigger perceptive, year-over-year, they increased 29.8%. On a monthly basis, 46,000 new homes were sold in the U.S. economy. This was the lowest amount since February of this year, when 45,000 homes were sold. (Source: “New Residential Sales In September 2016,” U.S. Census Bureau, October 26, 2016.)
The supply for new single-family houses edged lower in September. At the end of the month, 235,000 new houses were available for sale. In the previous month, this figure was 236,000. But, this situation has improved compared to the same period a year ago.
In September of 2015, the supply was 221,000. This represents a decline of 0.42% month-over-month, and an increase of 6.78% year-over-year. Assuming that the current sale rate remains, the new home supply would take 4.8 months to be cleared.
Looking at new home prices in September, the median sales price was $313,500 and the average sales price was $377,700. In August, the average sales price was $356,200. In September 2015, it was $367,800.
Looking at the sales of new houses in different geographical areas of the U.S. economy, month-over-month, we see the following:
- In the northeast, sales of new homes increased 33.3%. This was the best-performing region.
- In the midwest, sales of new homes jumped 8.6%.
- In the south, sales increased by just 3.4%.
- In the west, home sales plunged 4.5%. In the previous month, sales were up by over seven percent.
New home sales data is very critical for investors and economists. They can use this as a leading indicator of the housing market in the U.S. economy and how it could impact the U.S. gross domestic product (GDP).
