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New home sales slip in September

10/24/2019
Sales of new single‐family houses in September 2019 slipped 0.7% to a a seasonally adjusted annual rate of 701,000 from the revised August rate of 706,000, the U.S. Census Bureau and the Department of Housing and Urban Development reported today.

But the latest figure is 15.5% above the September 2018 estimate of 607,000.

By region, sales in the Northeast fell 2.8% on a month-over-month basis but rose 6.3% in the Midwest. Sales in the South declined by 0.2% and dropped 3.8% in the West.

The seasonally‐adjusted estimate of new houses for sale at the end of September was 321,000, representing a 5.5-month supply at the current sales rate.

“New home sales inched down in September, but the ongoing trend remains positive as builders increase their production,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.

On a year-to-date basis, new home sales are 12.8% higher in the South and 7.3% higher in the West. Sales are down 10.3% in the Northeast and 10.6% in the Midwest.

“Sales volume is expected to improve slightly in the coming months as more newly-built inventory arrives,” said Jing Fu, NAHB’s director of forecasting and analysis.

This report follows the National Association of Realtor's existing-home sales data for September, released Tuesday, which showed sales falling 2.2% to a seasonally adjusted rate of 5.38 million.

 
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