According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, U.S. sales of newly built, single-family homes in August 2017 fell 3.4 percent to a seasonally adjusted annual rate of 560,000 units from an upwardly revised July 2017 reading.
This was the lowest sales reading since December 2016. However, year-to-date, new home sales are 7.5 percent above their level over the same period last year.
"This month's report is another reminder that builders need to manage rising supply-side costs to meet consumer demand for affordably priced homes," said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas.
"The year-to-date growth shows that new home sales are continuing to make consistent, long-term gains," said NAHB Chief Economist Robert Dietz. "However, we may see more volatility in the next few months as communities affected by the recent hurricanes experience construction delays and other economic disruptions."
The inventory of new homes for sale was 284,000 in August, which is a 6.1-month supply at the current sales pace.
Regionally, new home sales remained unchanged in the Midwest. Sales fell 2.6 percent in the Northeast, 2.7 percent in the West and 4.7 percent in the South.