US New Home Sales Surge In August To Highest Since 2006

Despite a huge upside surprise in existing home sales (to highest SAAR since 2006), analysts expected a small drop MoM in new home sales in August (which makes some sense after the colossal rebound in the last 3 months to well above the pre-COVID levels and the largest YoY jump since 1992!).

But, in keeping with the recent trend, new home sales beat expectations with a 4.8% MoM rise (-1.2% MoM exp) but we do  note that YoY growth in sales slowed very modestly from 28 year highs...

Source: Bloomberg 1.011mm SAAR (well above the 890k SAAR expected)...This is the first time new home sales SAAR is above 1mm since Sept 2006...

Source: Bloomberg

Mixed picture across regions with the Midwest sales down 21.7% MoM (and West -1.7% MoM), while sales in the South surged 13.4% MoM and the Northeast saw sales rises 5.0% MoM.

Notably, while existing home prices surged to a new record high, median new home price fell 4.3% y/y to $312,800; average selling price at $369,000.

Also worth pointing out is that unlike the surge in high-end existing home sales, 12% of new homes sold in August cost more than $500,000, down from 14% prior month.