(RTTNews) – New home sales in the United States soared in September, according to a report released by the Commerce Department on Tuesday.
The report says new home sales climbed 14.0% to an annual rate of 800,000 in September after falling 1.4% to a downward revised rate of 702,000 in August.
Economists expected new home sales to jump 2.7% to an annual rate of 760,000 from the 740,000 initially announced for the previous month.
Despite the much stronger-than-expected monthly growth, new home sales in September were still down 17.6% from the same month a year ago.
The strong monthly increase in new home sales came as new home sales in the northeast rose 32.3% to a rate of 41,000 and new home sales in the south increased by 17. , 5% to reach a rate of 498,000.
New home sales in the West also increased 8.2% to a rate of 197,000, while new home sales in the Midwest declined 1.5% to a rate of 64,000.
The Commerce Department also said the median sale price for new homes sold in September was $ 408,800, up 1.8% from $ 401,500 in August and 18.7% from 344. $ 400 the same month a year ago.
The estimate of new homes for sale at the end of September was 379,000, or 5.7 months of supply at the current sales rate. Months of supply are down from 6.5 months in August, but up from 3.5 months in September 2020.
“We expect new home sales to move mainly sideways over the remainder of 2021, as strong demand and low mortgage rates are tempered by high prices and construction delays,” said Nancy Vanden Houten, economist Chief American Officer at Oxford Economics. She added: “The need to overcome these backlogs should support the construction of new homes in the coming months, even as the pace of sales moves sideways.”
Last Thursday, the National Association of Realtors released a separate report showing existing home sales rebounded far more than expected in September.
NAR said existing home sales rose 7.0% to an annual rate of 6.29 million in September after falling 2.0% to a rate of 5.88 million in August. Economists expected existing home sales to jump 3.6% to a rate of 6.09 million.
Existing home sales hit their highest annual rate since January, but were still down 2.3% from the same month a year ago.
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