U.S. Sept. new home sales rise 3.5%
Sales hit 1.206 million units, third highest level on record
cbs.marketwatch.com
By Corbett B. Daly, CBS Marketwatch
Last Update: 10:57 AM ET Oct. 27, 2004
WASHINGTON (CBS.MW) -- Sales of new homes in the United States unexpectedly rose 3.5 percent in September to a seasonally adjusted annual rate of 1.206 million units, the Commerce Department said Wednesda
It's the highest level since May and the third highest level on record. Economists had been expecting a decline to about 1.14 million units, according to a survey conducted by CBS MarketWatch. See Economic Calendar.
Economists had expected depressed sales as a result of the hurricanes that ravaged the Southeast last month.
"Either the hurricanes had no impact or the underlying pace of demand is much stronger than we thought," said Steve Stanley, economist at RBS Greenwich Capital Markets.
"In either case, the simple reality is that housing activity is incredibly robust, and, with mortgage rates still at historically attractive levels, should remain so for the near future," Stanley said.
Meanwhile, the number of new homes sold in August was revised lower to 1.165 million from the 1.184 million estimated last month. Read the full report.
The number of new homes for sale in September increased from a revised 399,000 to 404,000, the highest in a quarter century. The inventory represents a 4.1-month supply based on the September sales rate, down from 4.2 months in August.
The median price of a new home sold in September fell to $197,700 from $215,900, the lowest since December. Still, home prices have risen 3 percent since September of last year.
Home sales rose in each of the four regions of the country except the West.
Sales in the Midwest rose 12.3 percent to 238,000 units, while sales in the Northeast rose 6 percent to 71,000 units. Sales in the South, the country's largest region, rose 2.7 percent to 539,000 units. Sales in the West declined 0.8 percent to 358,000 units.
"Sales in the South held up particularly well despite concerns over a hurricane impact; suggestive of interest-rate traction with the steady decline in mortgage rates and less of a crowding effect from the current level of home prices," said Mat Johnson of ThinkEquity Partners.
The government cautions that its housing data are subject to large sampling and other statistical errors. It can take six months for a new trend in new home sales to be established.
Over the past six months, new home sales have averaged a 1.181 million annual rate, down from 1.192 million computed for the same interval last month.
"Given the strength of mortgage applications, which dipped a bit last week but remain at a very high level, we think sales can remain at their September pace for some time yet," said Ian Shepherdson of High Frequency Economics in Valhalla, New York, adding "a serious housing slowdown seems as far off as ever."
In a separate report, the Commerce Department said Wednesday that new orders for U.S.-made durable goods increased 0.2 percent in September, held back by a big drop in orders for transportation goods. Read the full report.
|
