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Unsold Home Inventory Falls for Second Month in a Row
Sales of new single-family homes rose 5.3% in September to a seasonally adjusted annual rate of 1.075 million units, according to figures released by the U.S. Commerce Department on Oct. 26, but the increase followed downward revisions to the sales rate for the previous three months, and the sales pace was down 14.2% from a year ago.
“Recent declines in mortgage interest rates and energy prices also have buoyed consumer attitudes and home buyer demand,” said NAHB Chief Economist David Seiders. “Surveys of consumer sentiment show that increasing numbers of households view this as a good time to buy homes.”
The Commerce Department reported that the median price of new homes sold in September was $217,000, 9.7% below a year earlier. Seiders noted, however, that the monthly price numbers are notoriously volatile.
For the third quarter as a whole, the Commerce Department reported that the median sales price was down by 1.7% on a year-over-year basis. “This price adjustment is more reflective of what’s actually going on in the housing market,” Seiders said.
The inventory of new homes for sale fell for the second consecutive month in September to 557,000 units, equivalent to a 6.4 months’ supply at the current sales pace. Completed homes for sale accounted for 28% of the inventory; units still under construction represented nearly 56%; and for-sale units with permits were 16% of the inventory.
Completed homes for sale were on the market for a median 3.5 months, the same as in August and down from 3.8 months a year earlier.
Regionally, sales were up 6.9% in the South and 23.9% in the West. They were down 6.3% in the Midwest and 34.5% in the Northeast. All four regions reported a substantially lower sales rate than a year earlier.
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 NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market
With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.
To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.
For assistance, call the NAHB Member Service Center at 800-368-5242.
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