New home sales plunge in September

A huge miss for new home sales.

New home sales fell 11.5% at an annualized pace of 468,000 in September, according to the Census Bureau. That was the weakest pace since last November.

Economists had estimated that sales of new single-family houses fell 0.6% in September compared to the prior month, at an annualized rate of 549,000. The data for August were revised lower to 5.2% (from 5.7%) at an annualized pace of 529,000 (from 552,000).

The median price of new houses sold was $US296,900, while the average sales price was $US364,100, the Census Bureau said.

“In all, this report was quite disappointing, but the series for new home sales is quite volatile and makes up a small proportion of total home sales in the US,” wrote BNP Paribas’ Derek Lindsey in a client note. “Other housing data — including existing home sales, which surprised to the upside in September — remain solid.”

Last week, data from the National Association of Realtors showed that existing-home sales rose 4.7% at an annualized pace of 5.55 million in the month — more than expected.

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