At 629,000, August's annualized sales pace for new homes came in right
at expectations but is offset by sharp downward revisions to the two
prior months totaling 39,000 (July now 608,000 vs an initial 627,000;
June now 618,000 vs 638,000).
And the gain in August was boosted
by discounting as the median fell 2.4 percent to $320,200. Discounting
is also evident in the year-on-year rate, at plus 1.9 percent vs a 12.7
percent rise in sales.
Supply moved into the market, up 1.6
percent to 318,000 new homes for sale, but remains little changed
relative to sales, at 6.1 months vs 6.2 months.
By region, the
West is doing best with a 9.1 percent monthly gain and a 19.1 percent
yearly gain. The Midwest is next at plus 2.7 percent for a yearly 13.2
percent followed by the South which is by far the largest region, down
1.7 percent in the month but up 11.5 percent year-on-year. The Northeast
is by far the smallest region and though sales soared a monthly 48
percent, the gain is exaggerated given the low base. Northeast sales on
the year are down 2.9 percent.
This report is mixed with the
downward revisions a reminder of how volatile housing data can be. But
volatility aside, the sector is doing no better than mixed and looks to
remain a disappointing contributor to overall economic growth.
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