New-home sales jumped 5.7 percent in September, reaching a two-year high with an annual rate of 389,000, according to data released today by the U.S. Census Bureau.
While the report included downward revisions for the previous three months, several numbers in September’s report were positive. Months’ supply, at 4.5 months, shrank to the lowest level seen since 2005, and the number of completed homes for sale stood at a record low 38,000. Both average and median prices stood well above their year-ago levels, with improvements of 14.5 percent and 11.7 percent, respectively.
"New-home sales exceeded consensus and reached their highest level since the federal tax credit drove demand in spring 2010," wrote Adam Rudiger, a senior analyst at Wells Fargo, in a report discussing the numbers. "Further, actual sales were unchanged sequentially in September, which is atypical on a seasonal basis, as sales tend to normally decline, also signifying a stronger market."
Claire Easley is a senior editor at Builder.