September New Home Sales Up Slightly

WASHINGTON D.C. ?EUR??,,????'??+ Sales of new single-family homes rose 2.1 percent to a seasonally adjusted annual rate of 1.222 million units in September following downward revisions to the June, July and August rates, according to a report released today by the Commerce Department.

?EUR??,,????'??Home builders are beginning to see a very modest slowdown in what has been a very robust sales pace this year,?EUR??,,????'?? said David Wilson, president of the National Association of Home Builders (NAHB). ?EUR??,,????'??Housing demand remains quite healthy and our monthly survey of builders indicates that they continue to see plenty of traffic in their sales offices and still have an upbeat view of sales prospects for the next six months.?EUR??,,????'??

Two regions posted increased sales for the month. In the Midwest, sales were up 24.9 percent, while in the South, sales increased 5.6 percent. Sales dropped 20.0 percent in the Northeast and were down 11.8 percent in the West.

The inventory of new homes for sale was up slightly to 493,000 for September, a 4.9 months?EUR??,,????'??? supply at the current sales pace. Of that total, for-sale units that were not yet started represented 22 percent ?EUR??,,????'??+ an historically high share. Units still under construction were 57 percent of the inventory, and completed homes for sale units were 21 percent of the total. Completed units were on the market for less than four months, essentially the same period as a year earlier.

?EUR??,,????'??We are definitely headed for record home sales in 2005,?EUR??,,????'?? said NAHB Chief Economist David Seiders. ?EUR??,,????'??However, the pattern of sales in recent months suggests that the new-home market may have tapped out around mid-year, a conclusion consistent with findings from our builders surveys.?EUR??,,????'??

Total New Houses Sold During Period: 1,122,000

Percent change from last month: +2.1
Percent change from last year: -0.1