US home new sales beat expectations; median prices rise 20.1 per cent

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US home new sales beat expectations; median prices rise 20.1 per cent

On Friday, a US Commerce Department report had unveiled that the sales of new US single-family homes, the most lucrative item in housebuilding industry, had spurred up for a second successive month in August, while July new home sales data was revised higher, suggesting that the demands of new housing might ostensibly have peaked following a pandemic-associated frenzy last year.

Aside from that, Commerce Department report had added that the supplies of news homes for sales had been peaked to a 13-year high, however, US new home sales prices remained unaltered on a month-on-month basis. Meanwhile, adding that a pandemic induced real estate property buying frenzy might be easing, a senior advisor at Brean Capital in New York said, “These data suggest that the surge in new home sales during the pandemic has ebbed and inventories of unsold homes have risen to a more normal level in relation to sales.

This report and the existing home sales data for August suggest that a considerable portion of the flow adjustment of sales to higher demand may have taken place.

US new home sales top expectation

According to US Commerce Department data, US new home sales picked up by 1.5 per cent to a seasonally adjusted annualized rate of 740,000 units in August, while July new home sales had been revised up to 729,000 units compared to a prior 708,000 units.

US new home sales, in tandem, gained 6.0 per cent in the densely congested Sothern US cities, while a 1.4 per cent rise had been logged in the West, however, new home sales had faltered as much as 31.1 per cent in Mideast compared to the same time a year earlier.

Nevertheless, however, new US home sales were slumped by 24.3 per cent in August on a year-on-year basis.