U.S. September New Home Sales - Positive trend contrasts weakness in Existing Home Sales
September new home sales with a 4.1% rise to 738k are on the firm side of expectations. The series, while volatile, has been trending higher since falling to a 12-month low of 611k in November 2023.
The improving new home sales trend contrasts weakness in existing home sales, which in September fell to their lowest level since October 2010. This suggests improving supply is offsetting weakness in demand in the new home sales picture.
September sales saw the strongest rise in the Northeast, followed by the South, despite Hurricane Helene arriving late in the month. Sales were flat in the Midwest and fell in the Midwest.
Price data bounced on the month, the median by 3.7% and the average by 3.0%, leaving yr/yr data less weak, the median now unchanged from -6.8% and the average at -2.7% from -8.3%. Supply as well as supporting sales is restraining prices.
