New Home Inventory Crosses 6-Month Supply Mark as Sales Lag

New Home Inventory Crosses 6-Month Supply Mark as Sales Lag”

Sales of new USA homes slumped 3.4 percent in August, the second straight monthly decline.

The decline surprised economists, who had expected new home sales to climb to a rate of 583,000 from the 571,000 originally reported for the previous month.

And the sales pace was 1.2 percent below the rate in August 2016. The June rate was revised upward by 9,000.

But August's drop in new home sales also points to the limits of the rebound from the Great Recession and the housing bust that triggered the downturn a decade ago.

Sales of new homes fell in August and were running below the pace of previous year, the U.S. Census Bureau reported. Ratiu said the 4.7 percent decline in the South reflected the damaging impact of Hurricane Harvey, which made landfall in southeast Texas on August 26.

At the same time, the number of new single-family homes for sale across the county ticked up another 3.4 percent to 284,000 which is the most available inventory since May of 2009 and 17.8 percent higher versus the same time a year ago.

Sales fell sharply in the US South, dropping 4.7 percent, and in the West and Northeast, declining by 2.7 percent and 2.6 percent, respectively. The number of houses for sale in August was the highest so far in 2017.

Impediments to construction, including scarce labor and rising costs for materials, have meant that supply has not kept pace with demand. Fewer new homes priced below $200,000 are coming onto the market.

"Builders will have difficulty finding skilled construction workers that are in short supply - residential construction employment is just touching 2002 levels, as employment in other sectors have long-passed 2002-07 levels".

Like this



26 September 2017
Minister Says Iran's New Ballistic Missile 'Strategic Weapon'
Iran showed off a new missile, named Khoramshahr after a southwestern city, at an anniversary military parade in the capital. Iran says it has successfully tested a new-medium range missile, in defiance of US President Donald Trump.

26 September 2017
Led strikes killed 84 civilians in Syria - HRW
September 23 marked the third anniversary of International Coalition intervention into the Syrian crisis. Half of all casualties from International Coalition strikes were women and children.

26 September 2017
European Release Date for Switch's Golf Story Confirmed
Golf Story has an MSRP of $14.99 and is developed and published by SideBar Games, a new studio with no previous releases to its name.

26 September 2017
Ex-NY Senate leader Skelos gets new trial in corruption case
Prosecutors had charged they pressured businesses dependent on Albany cash to line Adam's pockets - such as with no-show jobs. The court overturned the Skelos' 2015 conviction after a Supreme Court decision narrowed the legal definition of corruption.

26 September 2017
Uber set to cease operations in Quebec, reports say
Uber employs more than 50 office workers in the province, where more than 10,000 drivers have worked for the company, he said. Representatives of Quebec's transport ministry were not immediately available to comment.

26 September 2017
Netanyahu Congratulates Merkel, Ignores Gains By The Far-Right AfD Party
Today, Germany is a key Israeli ally in Europe, and assumes responsibility for the atrocities committed during the Holocaust.

26 September 2017
Oasis Petroleum Inc. (OAS) Earns "Equal Weight" Rating from Morgan Stanley
The company had revenue of $254.10 million during the quarter, compared to analysts' expectations of $255.41 million. Oasis Midstream Partners has granted underwriters a 30-day option to buy an additional more than 1.1 million units.

26 September 2017
Alibaba to pay $807 million for majority stake in logistics firm Cainiao
Best Inc, a Chinese delivery firm backed by Alibaba, raised under half of what it had initially meant to in a U.S. Alibaba did not immediately respond to a request for comment.

26 September 2017
Plex News is your new personalized streaming news content option
Users can choose the topics and sources of news they prefer, and Plex will create custom video feeds containing each day's news. Plex is a quarter late, given that we are in late September, but it's now ready to deliver news amongst your other media.

26 September 2017
Father of Otto Warmbier Slams North Korea: 'Not Victims - They're Terrorists'
Warmbier was 21 when he was arrested in North Korea for stealing a political banner, North Korean officials said. Trump praised the Warmbiers for their interview from his official Twitter account.