–Home Supply Unchanged; Median Sales Price Jumps To 5-1/2 Year High

By Kevin Kastner

WASHINGTON (MNI) – The pace of new single-family home sales fell
0.3% in August to an annual rate of 373,000 after seasonal adjustment, a
slower pace than expected, but following upward revisions to the pace in
the previous two months, data released Wednesday by the Commerce
Department showed.

The small decline in home sales came after August gains in the pace
of existing home sales, housing starts, and an increase in the September
NAHB housing index, an indication of continued, though slow, improvement
in the housing market.

Analysts in a Market News International survey expected the pace of
new home sales to rise to a 380,000 annual rate from the originally
reported 372,000 pace in July. The sales pace in July was revised up to
374,000, the highest rate since April 2010. The May sales pace was
revised up to 361,000 from the previously reported 359,000 rate.

August sales were up 20.0% in the Northeast region, continuing the
upward trend following a sharp June decline. Sales were also up 1.8% in
the Midwest and 0.9% in the West, but fell 4.9% in the large South
region.

On an unadjusted basis, August new home sales were down 8.8% to a
level of 31,000 from the July level of 34,000. There were 25,000 homes
sold in August 2011 on an unadjusted basis.

Through August, there were roughly 256,000 homes sold in 2012, the
Commerce Department said. This was up from 210,000 in the first eight
months of 2011.

The supply of homes for sale in August was unchanged from July at
141,000, down sharply from 161,000 in August 2011 and still at a record
low.

As a result of the very small decline in sales and no change in
supply, the months supply held steady at 4.5 months at the current sales
pace. The months supply was 6.6 months in August 2011.

The median sales price rose 11.2% to $256,900 in August, the
highest median price since $262,900 in March 2007. The median
price was up 17.0% from the $219,600 median price in August 2011.

The mean sales price rose 9.1% to $295,300 in August, the highest
since July 2008 and up 13.9% from August 2011.

** MNI Washington Bureau (202) 371-2121 **

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