New Home Sales Rebound in August, After July Slump

But the median new home price slipped slightly

   

New Home Sales Rebound in August, After July Slump

homeForSale New Home Sales Rebound in August, After July SlumpIn a sign that increasing mortgage interest rates haven’t yet cooled the U.S. housing market, the Commerce Department announced on Wednesday a sizable boost to new home sales last month.

New home sales bounced back from a 14.1% tumble in July to surge 7.9% in August. Sales last month hit a seasonally-adjusted annualized pace of 421,000 units, up from an annualized rate of 390,000 in July, the Associated Press noted.

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In a year-over-year comparison, new home sales last month climbed 12.6% over the same time in 2012.

However, the median home price slipped 0.7% to $254,600 in August, compared to the prior month. The inventory of new homes on the market edged up 3.6% last month, hitting 175,000.

While the housing market continues to recover, economists consider an annualized sales pace of 700,000 units to be historically healthy.

Yesterday, the S&P/Case-Shiller index showed a 12.4% rise in home prices in 20 major metropolitan markets compared to last year.

 

The news gave homebuilders some joy, sending shares of Ryland Group (RYL) up more than 2% in Wednesday mid-day trading, while DR Horton (DHI) shares gained almost 2%. Toll Brothers (TOL) shares rose slipped slightly.


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/new-home-sales-rebound-in-august-after-july-slump/.

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