US new home sales surge in September

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Sharecast News | 25 Oct, 2023

New home sales in the US came in at an accelerated clip in September, rising 12.3% month-on-month to the highest level seen since February 2022.

Sales of new homes totalled 759,000 in September, according to the Census Bureau, up from 676,000 in August and ahead of consensus estimates for a reading of 680,000.

The seasonally‐adjusted estimate of new houses for sale at the end of September was 435,000, a supply of 6.9 months at the current sales rate, while the median sales price of new houses sold was $418,800 and the average sales price was $503,900.

Oxford Economics' Nancy Vanden Houten said: "New home sales surprised to the upside in September as a lack of existing homes for sale and builder incentives continue to prop up the market for new homes. While new home sales may continue to be more resilient than existing home sales, we expect they will weaken in the fourth quarter in the face of mortgage rates at a 23-year high and a slowing economy and labor market"

Reporting by Iain Gilbert at Sharecast.com

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