New Home Sales Surge in September

Home Buying Appears to Be Picking Up Again Concerns that a slowdown in housing activity was underway appear to have been unwarranted. New home sales easily topped expectations and jumped 14.0% to a 800K-unit pace during September, the strongest since March. The robust gain in new home sales follows last week’s news of a similarly strong upturn in existing home sales during September. Taken together, these reports offer evidence that buyer demand remains strong and is picking up again, even amid fast-rising prices and low inventory levels. September’s strong gain in new home sales provides the first sign that the many supply constraints currently affecting builders may be starting to ease. Since peaking in the spring, lumber prices have come down markedly. Lumber accounts for a significant share of the overall cost of new home construction, so builders are likely under less pressure to pass on rising costs through higher prices. During September, the median selling price of a new home was up 18.7% over the year, a more moderate increase compared to the 23.3% realized the month prior. READ FULL ARTICLE>>