New Home Sales Tumble In September As Average Price Hits Record High

Despite the surprise surge to multi-year highs in existing home sales, new home sales were expected to rise only a modest 1.4% MoM in September (vs +4.8% MoM in August) but things were notably worse with new home sales tumbling 3.5% in September (and August’s bounce revised down to +3.0%)…

Source: Bloomberg

This move and revision takes SAAR back below 1 million (to 959k in Sept vs 1.025mm exp)…

Source: Bloomberg

The median price ticked up from $322.4K to $326.8K…

But the fact that 19% of new homes sold in Sept. cost more than $500,000, up from 15% prior month, sent the mean price of home to a new record high…

Source: Bloomberg

Perhaps notably, inventory improved modestly with months’ supply at 3.6 in Sept. compared to 3.4 prior month.