Monday, November 30, 2009

MIAMI - APRIL 24:  A for sale sign is seen in ...Image by Getty Images via Daylife

By Ruth Mantell - MarketWatch

WASHINGTON -- Sales of new homes rose 6.2 percent in October on strong results in the South, the Commerce Department estimated Wednesday.

The rise in U.S. new-home sales to a seasonally adjusted annual rate of 430,000 was well above the 390,000 pace that economists surveyed by MarketWatch had expected.

Sales rose 23.2 percent in the South. By contrast, monthly sales fell by 20 percent in the Midwest, and by 5.1 percent in both the Northeast and the West.
New Home Sales
A development of new homes is shown in Homestead, Fla. Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.

"On the surface, one would have assumed that the surge in sales activity was induced by the rush of first-time home buyers trying to get ahead of the originally scheduled end of the first-time homebuyers' tax credit at the end of October," wrote Millan Mulraine, economics strategist with TDSecurities, in a research note. "However, given the lopsided regional dimension to the increase in home sales we are not entirely convinced that this was the only story."

The government cautions that its housing data are subject to large sampling and other statistical errors, with large revisions common. It can take up to six months for a trend in sales to emerge.

The pace of new-home sales in September also was revised slightly higher, to a level of 405,000. New-home sales are up 5.1 percent compared with a year ago, the government's data showed.

The supply of homes on the market fell to 239,000 in October, representing a 6.7-month supply.

The median sales price in October hit $212,200, compared with $213,200 in the prior year.

Reblog this post [with Zemanta]


Post a Comment


blogger templates | Make Money Online