August new home sales were originally reported at 629,000 units at a Seasonally Adjusted Annualized Rate (SAAR).
Today the New Residential Sales report shows August at 585,000 units and September at 553,000.
Before diving into the dismal numbers, recall that on September 26 I reported New Home Sales Rise Following Huge Two-Month Downward Revisions.
That alleged 3.5% rise, is now seen as a 3.0% decline. And on top of that decline, September sales plunged another 5.5%
New Home Sales
Sales of new single‐family houses in September 2018 were at a seasonally adjusted annual rate of 553,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 5.5 percent below the revised August rate of 585,000 and is 13.2 percent below the September 2017 estimate of 637,000.
The median sales price of new houses sold in September 2018 was $320,000. The average sales price was $377,200.
For Sale Inventory and Months’ Supply
The seasonally‐adjusted estimate of new houses for sale at the end of September was 327,000. This represents a supply of 7.1 months at the current sales rate
Don't Blame Hurricanes
The biggest decline in numbers was in the West.
Regional Numbers, in Thousands
- US Total: 553 -5.5%
- Northeast: 19 -40.6%
- Midwest: 72 +6.9%
- South: 318 -1.5%
- West: 139 -12.0%
New Home Sales Down 13.2% Year-Over-Year
This is the 4th consecutive month of new home sales declines. Existing Home Sales are Down for the 6th Consecutive Month.
There is no way to put lipstick on this pig.
Housing has peaked this cycle.
Mike "Mish" Shedlock