US EditionUS new home sales jump to more than 3-1/2-year high; economists dismiss rise as a fluke
New home sales rose 20.5% to 800,000 units annualized in August, driven by strong demand in the South and Northeast despite high mortgage rates, data showed.
- Purchases of newly built single-family homes in the U.S. jumped by 20.5% in August, reaching an annualized and seasonally adjusted total of 800,000, the highest figure recorded since January 2022.
- This unexpected rise followed amid falling mortgage rates and increased builder incentives despite economists expecting modest declines and volatile data.
- The sales gains were broad-based, led by a 72.2% jump in the Northeast and a 24.7% rise in the South, while inventory fell nearly 18% from July to August.
- Stephen Stanley anticipates that the recent surge in sales will mostly decline over the next few months, while 39% of builders indicated they lowered their prices in September—the highest rate observed since the onset of the pandemic.
- Builders plan slower construction and expect softer sales ahead, suggesting the August surge may not indicate sustained market strength.
40 Articles
40 Articles
Feast or Fluke? US Home Sales Hit Highest in Almost Four Years
The real estate market was a feast for buyers in August, according to Commerce Department data released Wednesday. New home sales rose a dramatic and unexpected 20.5% to a seasonally adjusted annualized rate of 800,000 units, the highest since January 2022 and leaving virtually every estimate in the dust. But, before anyone starts licking their lips, Wells Fargo analysts cautioned: “Take the gain with a huge grain of salt.” Economists noted that…
US new home sales jump to more than 3 1/2-year high; economists dismiss rise as a fluke - Hawaii Tribune-Herald
WASHINGTON — Sales of new U.S. single-family homes surged to the highest level in more than 3 1/2 years in August, but that likely exaggerates the housing market’s health, and a weakening labor market could limit the boost from falling mortgage rates.
Housing Market Under Trump Roars Back Despite High Prices
New home sales surged in August to the fastest pace in more than three years, defying predictions of a slowdown and signaling fresh momentum in the housing market despite elevated mortgage rates and stubbornly high prices, The Hill reported. Sales of new single-family homes rose 20.5% last month to a seasonally adjusted annual rate of 800,000 units, the Commerce Department reported Wednesday. That was up 15% from a year earlier and the strongest…
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