Steel Markets

New Home Sales Fall in September but Market Still Considered Strong

Written by Sandy Williams

New home sales fell in September to a seasonally adjusted annual rate of 468,000, a decline of 11.5 percent from the August rate of 529,000.

“It is not surprising to see sales pull back in September following a strong August reading, especially after a few months of weak job creation,” said NAHB Chief Economist David Crowe. “However, new-home sales year-to-date are up 17.6 percent compared to the same period of 2014, and we expect the market to continue improving at a gradual but steady pace for the rest of year.”

Purchase of new homes fell in all four U.S. regions. Sales plummeted 61.8 percent in the Northeast to the lowest level since April. Sales fell 8.3 percent in the Midwest, 8.7 percent in the South and 6.7 percent in the West.

JP Morgan economist David Silver said the report “does little to alter our view that the housing market is continuing to recover.”

“We view the new-home sales data as unreliable and many other more reliable housing indicators have been sending upbeat signals lately,” said Silver.

The September inventory of new homes for sale was 225,000 units, a 5.8 month supply a the current sales rate.

Median sales price rose to $296,900 in September, up from $289,100 in August. Average selling price for the month was $364,100.

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