New Home Sales Jump
The US Commerce Department reported Wednesday that new home sales rose at their fastest clip in five months in September, but continued price declines have analysts doubtful a recovery is in full swing. The report showed that sales jumped 5.7 percent to a seasonally adjusted annual rate of 313,000 units. The increase was largely due to a large boost in sales in the South, which helped to offset slump in the Midwest.
The percentage jump in September sales was the largest since March, and the sales pace was the fastest since April. The sales pace for August, meanwhile, was revised up by 1,000 to 296,000. September's pace was encouraging, considering economists taking part in a recent Reuters survey had projected the pace to be at 300,000, on average. However, the housing market is still plagued by a glut of unsold properties, many of which are cheaply-priced foreclosures which are driving down prices for non-distressed properties.
The median sales price for new homes sold in September was $204,400, the lowest since last October and down 10.4 percent from last September. At the current rate of sales, the Commerce Dept. report showed, it would take 6.2 months to exhaust supply, compared to a 6.6 month supply in the month prior. September's supply was the lowest since April 2010.
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