It wasn’t new home sales that smacked the market Monday morning, it was the looming election and lack of progress on stimulus talks. New home sales are still rocking and rolling.
The Census Bureau reduced the number of new home sales in August from 1.011 million down to 994,000. In September, the Census Bureau reported 959,000 new units sold, a 3.5% monthly drop. While the dip surprised investors, it’s not like the housing market is cooling off. New home sales are still 32% higher than last year, and the monthly data is notoriously noisy.
The number from August was the first monthly print above one million units since 2006, but with the revision, we’ll have to wait at least until we get October’s figures to see if we can crack the seven-figure annualized rate. In a sign of strength, the median sale price continued to climb and reached $326,800. The supply of new homes sits at just 3.6 months’ worth, well below the six-month supply that represents a balanced market.