Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

U.S. new home sales likely to have remained at same levels in September

U.S. new home sales might have been little changed. After rising sharply by 13.8 percent in July to 659,000 units annualized, the new home sales had dropped 7.6 percent in the following month. But the third quarter average was still nearly 11 percent more than the average seen in the second quarter. This underlines the strength seen in sales recently, noted Societe Generale in a research report.

New home sales had dropped around 8 percent in August after rising by almost 14 percent in July. Most of the volatility seen in the past two months was mainly because of huge fluctuations in demand in the South region. The South region recorded a surge in sales of more than 17 percent in July and dropped by a slightly over 12 percent in the following month. The Southern region’s level of sales in August was a bit above its six-month average pace, and hence the drop brought it back to trend, stated Societe Generale.

Anyways, the new home sales in the U.S. in September might have been little changed, added Societe Generale. Applications for mortgage for purchase in September were almost the same levels as seen in August. This implies that demand continued to be flat. However, there might be certain upside risk to this projection, given that the NAHB’s present sales index rose sharply to 71 from 65, said Societe Generale.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.