New Homes Sales Surge
Median sales price up 11.7% Nationwide
Marketwatch Sales of new single-family homes in the U.S. rose 5.7% in September to a seasonally adjusted annual rate of 389,000, the highest pace since April 2010, when the first-time homebuyer tax credit was initially due to expire, the Commerce Department said.
“Though the level of new-home sales remains very low, this report adds to the evidence of housing market recovery,” said analysts at RDQ Economics.
The government revised down the sales pace in August to 368,000 from a prior estimate of 373,000.
Economists surveyed by MarketWatch had expected new-home sales in September to rise to an annual rate of 387,000, given recent gains in other housing-market data, such as confidence among home builders, as well as housing starts and permits.
We have experienced double digit price increases in Bend OR YTD
Despite the gain in September, the pace of new-home sales remains relatively low compared with a peak of almost 1.4 million in 2005. But it’s improved 42% from a low of 273,000 in early 2011 as mortgage rates have hit record lows, foreclosures have dropped, and the jobs picture has slowly improved.
The median sales price in September shot up 11.7% year-on-year to $242,400.
The supply of new homes declined to 4.5 months at September’s sales rate from 4.7 months in August.
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