U.S. purchases of new homes rebounded in August from the slowest pace in almost a year, a potential sign of stabilization in the market, according to government data Wednesday.
Single-family home sales rose 3.5% month over month to a 629,000 annualized pace (estimates were for 630,000) after a 608,000 rate in July (revised from 627,000); June sales were revised down to 618,000 from 638,000. Median sales price increased 1.9% year over year to $320,200. Supply of homes at current sales rate fell to 6.1 months from 6.2 months.
While the sales gain was the first in three months, the downward revisions to prior figures indicate that the market in recent months was slower than previously reported, adding to broader indications of cooler demand in residential real estate.
The new-home market is being supported by the highest consumer confidence in 18 years and a robust job market. At the same time, rising prices and higher mortgage rates, amid a shortage of available and affordable homes, have been weighing on purchases.
The August gain was driven by advances in the Northeast and West, while the South, the biggest region, showed a decline.
New-home sales, tabulated when contracts get signed, account for about 10 percent of the market. They're considered a timelier barometer than purchases of previously owned homes, which are calculated when contracts close and are reported by the National Association of Realtors. Existing-home sales were unchanged in August after four straight declines, the NAR said last week.
318,000 new houses were on market at end of August, the most since February 2009. The pace of home sales in the Northeast rose 47.8% to 34,000; the West was up 9.1% to 168,000, and the Midwest advanced 2.7% to 77,000. Sales declined 1.7% in the South to a 350,000 pace.
