US new home sales surged 28.8% to a seasonally-adjusted annual rate of 685k in August, from a revised 532k in July.
August figures is the second-biggest jump and a sharp reversal of a drop of 8.6% in July compared with the initial estimate of a 12.6% drop to 511k.
And the good news is price increases for new homes continue to cool. The median price for a new home fell slightly to $436.8k down from $439.4k the previous month
We do not expect the August pace of sales to be sustained in the months ahead. The new home sales data in August is “an outlier” although it is the fastest since March 2022.
More downside risk to the numbers going forward is evident— with the rising mortgage rates and economic uncertainties. August numbers showed homebuyers are rushing to buy before mortgage rates move any higher. And the new home sales data are volatile month-on-month and are often revised.
Source: AmInvest Research - 28 Sept 2022
Created by AmInvest | Jul 26, 2024
Created by AmInvest | Jul 26, 2024
Created by AmInvest | Jul 26, 2024