New Home Sales Up in September. Inventory Dwindled Down to 204,000 Units

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The U.S. Census Bureau and the Department of Housing and Urban Development have jointly released NEW RESIDENTIAL SALES for September 2010.

The survey is primarily based on a sample of houses selected from building permits. Since a “sale” is defined as a deposit taken or sales agreement signed, this can occur prior to a permit being issued. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics. It takes four months to establish a trend of new home purchases.

New Home Sales  were expected to increase 4.0% to an annualized pace of 300,000 in September, up from 288,000 in August. As the effect of the first time homebuyer tax credit expiring wanes, sales are anticipated to inch forward. The NAHB index of homebuilder sentiment also rose 3 points in October, although the overall level was still still far from indicating optimism.

Reuters quick recap....

  • RTRS-US SEPT SINGLE-FAMILY HOME SALES 307,000 UNIT ANN. RATE (CONS 300,000) VS AUG 288,000 (PREV 288,000)
  • RTRS-US SEPT SINGLE-FAMILY HOME SALES +6.6 PCT VS AUG +1.1 PCT (PREV UNCH)
  • RTRS-US SEPT HOME SALES NORTHEAST +3.4 PCT, MIDWEST +60.6 PCT, SOUTH +3.2 PCT, WEST -9.9 PCT
  • RTRS-US SEPT NEW HOME SUPPLY 8.0 MONTHS' WORTH AT CURRENT PACE VS AUG 8.6 MONTHS
  • RTRS-US SEPT MEDIAN SALE PRICE $223,800, +3.3 PCT FROM SEPT 2009 ($216,600)
  • RTRS-US HOMES FOR SALE AT END OF SEPT 204,000 UNITS, LOWEST SINCE JULY 1968, VS AUG 206,000 UNITS

RTRS-TABLE-U.S. Sept single-family home sales rose 6.6 pct

Excerpts from the Release....

Sales of new single-family houses in September 2010 were at a seasonally adjusted annual rate of 307,000. This is 6.6 percent (±16.9%)* above the revised August rate of 288,000, but is 21.5 percent (±13.3%) below the
September 2009 estimate of 391,000.

The seasonally adjusted estimate of new houses for sale at the end of September was 204,000. This represents a supply of 8.0 months at the current sales rate. The median sales price of new houses sold in September 2010 was $223,800; the average sales price was $257,500.

New home sales are up from record lows. Not many folks are talking about an increase in purchase business though. Are you?