New Home Sales in U.S. Plummet 11.5 Percent in September
According to newly released data from HUD and the U.S. Census Bureau, sales of newly built, single-family homes fell 11.5 percent to a seasonally adjusted annual rate of 468,000 units in September.
"Despite this monthly drop, our members continue to tell us that housing is moving in the right direction," said Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo. "Consumers may have simply been reacting to soft job numbers."
"It is not surprising to see sales pull back in September following a strong August reading, especially after a few months of weak job creation," said NAHB Chief Economist David Crowe. "However, new-home sales year-to-date are up 17.6 percent compared to the same period of 2014, and we expect the market to continue improving at a gradual but steady pace for the rest of year."
Regionally, new-home sales were down across the board. Sales fell 61.8 percent in the Northeast, 8.3 percent in the Midwest, 8.7 percent in the South and 6.7 percent in the West.
The inventory of new homes for sale was 225,000 units in September. This is a 5.8-month supply at the current sales pace.