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July 26, 2014

New-Home Sales Surge 5.7% in September

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New-Home Sales Surge 5.7% in September

New-home sales posted their largest gain in more than two years in September, the Census Bureau reported Wednesday. New-home sales rose 5.7 percent in September over August and are 27.1 percent higher year-over-year. 

The median price of a new home in September was $242,400, up 11.7 percent from a year earlier. Analysts contribute the increase to the tight supply of inventories of new-homes on the market. Inventories of new-homes are at their tightest supplies since August 2005.

"Combined with consistent, positive reports on housing starts, permits, prices and builder confidence in recent months, today's data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation," says Barry Rutenberg, chairman of the National Association of Home Builders. "Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today's exceedingly stringent guidelines."

Regionally, the largest gains in new-home sales in September occurred in the Northeast, where sales rose 16.7 percent; followed by the South with a 16.8 percent increase; and the West posted a 3.9 percent increase. The Midwest saw new-home sales fall 37.3 percent. 

Source: “New-Home Sales Hit 2-Year Hight,” CNNMoney (Oct. 24, 2012) and the National Association of Home Builders