Sales of recently built, single-family houses fell 0.7 percent to a seasonally adjusted annual rate of 701,000 units in September off a downwardly revised reading in August, according to recently published data by the U.S. Department of Housing and Urban Development along with the U.S. Census Bureau. On a year-to-date foundation, new home sales for 2019 are 7.2 percent greater than the exact same period in 2018.

“New home sales inched down in September, but the ongoing trend remains positive as builders increase their production,” stated Greg Ugalde, chairman of this National Association of Home Builders (NAHB) and a home builder and developer in Torrington, Conn.

“Sales volume is expected to improve slightly in the coming months as more newly-built inventory arrives,” stated Jing Fu, NAHB’s Director of Forecasting and Analysis.

A new residence sale happens when a sales contract is signed or a deposit is approved. The residence could be at any stage of building: not yet begun, under construction or completed. In addition to adjusting to seasonal effects, the September reading of 701,000 units is that the number of homes which could sell whether that rate continued for another 12 weeks )

The stock of new houses available has been 321,000 at September, representing a 5.5 weeks’ supply. The median sales price was 299,400. The median cost of a new residence sale a year before was 328,300.

Regionally, and also a year-to-date foundation, new home sales are 12.8 percent greater compared to South and 7.3 percent higher at the West. Sales are down 10.3 percentage at the Northeast and 10.6 percentage in the Midwest.

Jeff Thornton