New Home Sales Up ­– But Median Price Slips, Supply Stagnant

New home sales mustered a gain in September after four consecutive months of downturns, but the overall picture remains dismal for the housing industry.
The gain for last month is primarily attributed to builders slashing prices.
The U.S. Commerce Department said new homes sales jumped 5.7 percent last month, compared to August, to a seasonally adjusted annual rate of 313,000 homes.  That is 0.9 percent below the September 2010 estimate of 316,000.
The median sale price of a new home fell 3.1 percent to $204,400 — the lowest since October 2010. The average sales price was $243,900.
The inventory of new homes on the market was unchanged at 163,000, a record low. This represents a supply of 6.2 months at the current sales rate, Commerce said.
The slowdown in new home sales hurts economic recovery. Although new homes represent about 20 percent of the market, every home built creates an average of three jobs for 12 months and generates about $90,000 in taxes, according to the National Association of Home Builders.

Leave a Reply

Your email address will not be published. Required fields are marked *