US new home sales hit 6-month high; median prices hover above $400,000-US Com. Dept.

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US new home sales hit 6-month high; median prices hover above $400,000-US Com. Dept.

On Tuesday, US Commerce Department data had unveiled that sales of new US single-family homes, the most lucrative item in US homebuilding industry, had witnessed a sharp shoot-up to a six-month peak in September, though many first-time buyers were reportedly failing to convert their homeownership plans into a reality in context of a corpulent pick-up in house prices.

Nevertheless, several industry analysts were quoted saying followed by the release of new US home sales data that US homebuilding markets, which had anchored the US economy alongside mega-cap tech giants during a pandemic-led economic downturn in 2020, might just have peaked, since last year’s buying frenzy had eased as a robust vaccination drive that started off in March this year, had encouraged workers to return to their offices and schools in a number of US states had re-opened for in-person attendance.

US new home sales shoot up 14.0 per cent in September

According to US Commerce Department data, new US home sales took a torrential high-tide of 14.0 per cent to a seasonally adjusted annual rate of 800,000 units in September, marking off the strongest level since March, 2021, while August new US home sales were revised down to 702,000 units compared to an initial estimate of 740,000 units.

On top of that, in an alignment with a soaring labour costs and prices of raw materials, the median value of new US home prices had jumped 18.7 per cent in September to $408,800 compared to same time a year earlier. New US home sales increased solidly in the South, West and Northeast part of the United States, however, fell in the Midwest, the US Commerce Department data added.