Economy

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

Latest


26 September 2017
Hardik Pandya and the art of game-changing knocks in Australia series
Since then, Pandya saw an upward curve before losing form - and his place in the Indian squad - in a short span of time. Action now shifts to Bangalore where Australia would eye pride while India would look to extend their domination.

26 September 2017
Which Analysts Are Watching Ultra Petroleum Corp. (NASDAQ:UPL)?
Stifel Nicolaus upgraded Ultra Petroleum Corp from a "hold" rating to a "buy" rating in a research note on Monday, June 12th. The firm purchased 122,074 shares of the oil and gas exploration company's stock, valued at approximately $1,325,000.

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
Croatian court jails former Serb commander
Croatia's proclamation of independence from the former Yugoslavia sparked the 1991-1995 war with Belgrade-backed rebel Serbs. Last week, during the closing statement of his defense, Vasiljkovic rejected as false all allegations from the indictment.

26 September 2017
Donald Trump once had a thing for Princess Diana
The leaked recordings of the two men's conversations got further derogatory with Trump talking about Princess Diana's looks. It had begun to feel as if Trump was stalking her.

26 September 2017
BMW produces giant wireless charging pad for your auto
The sensors in the cars then guide you to the charging pad and tell you where to stop your auto . It works in a similar way to the wireless charging of mobile phones.

26 September 2017
Eminence Capital LP Boosted Its Lennar Corp (LEN) Holding by $18.09 Million
Cornerstone Advsrs owns 83,700 shares for 1.03% of their portfolio. 5,296 were accumulated by First Interstate Commercial Bank. The stock of Duke Realty Corp (NYSE:DRE) has "Hold" rating given on Monday, September 11 by BMO Capital Markets.

26 September 2017
John Boyega voices new Star Wars: Battlefront II trailer
As one of the most requested fan modes, galactic-scale space combat is also brought to life in Star Wars Battlefront II . There's also an arcade mode, as well as two-player split-screen.

26 September 2017
Atletico agree deal to re-sign Costa from Chelsea
Costa was not included in Chelsea's 25-man squad for the Champions League group phase, ironically drawn in Group C along with Atletico.

26 September 2017
Crónica: FC Porto goleia e pressiona Sporting antes do clássico
O time da casa teve uma partida tranquila e precisou de seis minutos para construir sua vitória ainda no primeiro tempo. Conseguimos a vitória e é importante continuar assim com esta concentração durante toda a época.



Recommended