Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

New home sales in slow recovery

By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- New home sales edged higher in September, according to government figures reported Wednesday, but the recovery from the all-time lows reached earlier this year remained slow.

Sales of newly built single-family homes rose to an annual rate of 307,000 units in September from 288,000 units the month before, the Commerce Department said.

The sales figure was higher that the annual rate of 299,000 expected by analysts surveyed by Briefing.com.

But the modest increase does not give "too much cause for hope," according to Celia Chen, a senior director at Moody's Analytics.

"Sales did rise which is good, but the pace is still very weak," Chen said. "It's still close to a record low. It just doesn't seem that demand is really firming."

The August sales were the third-lowest level since the Commerce Department started tracking new home sales in 1963, trailing only the 282,000 rate reported in May, and 285,000 in July.

The government said the median sales price of new homes was $223,800, up from $220,500 the month before.

That was one bright spot, according to Chen, but it might have had more to do with limited inventory than increased demand.

"There are not many of them [new homes] on the market, and inventories are very tight. Builders have just not been putting up a lot of homes," Chen said.

At the end of September, 204,000 new homes were for sale, equal to an 8-month supply at the latest pace.

A separate report issued Monday by the National Association of Realtors indicated that existing home sales climbed for the second month in a row in September. To top of page

Search for Jobs

Index Last Change % Change
Dow 20,695.92 39.34 0.19%
Nasdaq 5,849.63 31.94 0.55%
S&P 500 2,352.84 6.88 0.29%
Treasuries 2.41 -0.01 -0.25%
Data as of 10:41am ET
Company Price Change % Change
Micron Technology In... 29.10 2.63 9.94%
Bank of America Corp... 23.20 0.13 0.59%
Advanced Micro Devic... 13.90 0.11 0.76%
Mylan NV 40.86 -0.74 -1.79%
Ford Motor Co 11.68 0.01 0.04%
Data as of 10:26am ET
Sponsors

Sections

Trump has agreed to conservative lawmakers' demands to eliminate Obamacare mandate to cover many health benefits, but that could make it tough for those with pre-existing conditions to find good coverage. More

Leah Juliett was just 15 when nude photos of her first leaked online. Now she's rallying for awareness of the abuse she fell victim to in the March Against Revenge Porn in Brooklyn on April 1. More

A PwC report estimates that 38% of U.S. jobs are at a high risk of being replaced by robots and artificial intelligence over the next 15 years. More