U.S. new home sales fell in August but prices soared

Washington, DC, United States (4E) – The Commerce Department announced on Wednesday that sales of new homes in the U.S. fell in August compared to revised July figures, although prices rose amid tightening supply and solid demand.

Sales of new single-family homes for August recorded a seasonally adjusted rate of 373,000, a decline of 0.3 per cent from July’s revised level of 374,000 homes sold — the best performance since April 2010.

The result in August fell below projections by economists who expected 380,000 annual sales rate, although it was 28 per cent higher than the figures in August 2011.

Home prices also soared, suggesting there is tightness in the supply, which now stands at 4.5 months of demand. The supply in August equals that of July although much lower than last year’s supply rate of 6.6 months.

At the end of August, the seasonally adjusted figure for new homes listed for sale hit 141,000, matching the previous month’s record low.

For homes sold in August, the median price rose to $256,900, higher than the $231,100 in July and $219,600 in August 2011.

The four U.S. regions saw mixed performance in new home sales for the month of August. In the Northeast, Midwest and West sales grew by 20 per cent, 1.8 per cent and 0.9 per cent, respectively. Sales in the South, however, declined by 4.9 per cent.

---

---