Following existing home sales modest bounce, new home sales in September exploded by 18.9% MoM - the biggest jump since January 1992.
Against expectations of a 1.1% decline, new home sales soared 18.9% MoM in September - 9 standard deviations above expectations...
And the biggest jump in 25 years...
To the highest SAAR since 2007...
Highlights of New Home Sales (September)
- Single-family home sales rose 18.9% m/m to 667k annualized pace (est. 554k), the strongest since October 2007
- Purchases in U.S. South surged 25.8% m/m to 405k rate, fastest since July 2007; sales in other regions also advanced
- Median sales price increased 1.6% y/y to $319,700
- Supply of homes at current sales rate dropped to 5 months from 6 months; 279,000 new houses were on market at end of September
Bloomberg's key takeaways
The biggest monthly gain in home sales since January 1992 reflected an increase in the number of properties in which construction hadn't yet started. That level of 236,000 was the most since January 2007 and signals residential building will strengthen in coming months as firms get busy filling orders.
While the report showed particular strength in the U.S. South, possibly a reflection of increased demand following the storms, sales were firm in other parts of the country.