The latest New Home Sales Report showed new strength in September, but are we seeing a trend or merely an isolated event
What is the New Home Sales report? The New Home Sales report shows the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing demand, as well as economic momentum signaling future consumer purchases of furniture and appliances.
What’s happened recently? The Commerce Department reported September New Home Sales rose by 0.2 percent from August to a six-year high. On the other hand, New Home Sales for August, which were originally reported at 504,000, were revised to 466,000. In addition, sales in June and July were also revised lower.
What’s the bottom line? While housing and the overall U.S. economy are improving, whether housing can develop long-term improvement as a steady trend will be critical to a full U.S. recovery, as the health of housing affects so many other sectors of the economy.
I’ll continue to monitor all housing and economic reports closely. If you have any immediate questions, please call or email today.
