|
September Home Sales Show Signs of Winding Down
Sales of new single-family homes rose 2.1% to a seasonally adjusted annual rate of 1.222 million units in September following downward revisions to the June, July and August rates, the U.S. Commerce Department reported on Oct. 27. The September sales pace was 0.1% below a year earlier.
“Home builders are beginning to see a very modest slowdown in what has been a very robust sales pace this year,” said NAHB President David Wilson. “Housing demand remains quite healthy and our monthly survey of builders indicates that they continue to see plenty of traffic in their sales offices and still have an upbeat view of sales prospects for the next six months.”
“We are definitely headed for record home sales in 2005,” said NAHB Chief Economist David Seiders. “However, the pattern of sales in recent months suggests that the new-home market may have been tapped out around mid-year, a conclusion consistent with findings from our builders’ surveys.
“We’re projecting further modest erosion in home sales and housing production as the interest rate structure continues to move higher, although housing market activity will be buoyed to some degree in the wake of this year’s hurricane season,” Seiders added.
Regionally, sales were up 24.9% in the Midwest and 5.6% in the South, and down 11.8% in the West and 20.0% in the Northeast.
September’s inventory of new homes for sale rose slightly to 493,000, a 4.9 months’ supply at the current sales pace. For-sale units that were not yet started represented 22% of the total — a historically high share. Units still under construction accounted for 57% of the inventory, and completed homes for sale for 21%. Completed units were on the market for less than four months, essentially the same period as a year earlier.
|
