New Home Sales Disappoint Despite Home Price Drop, Inventory Surge

Following existing home sales disappointment, hope was once again high for a bounce in new home sales in August but once again disappointed with a 629k print (up from a revised 608k), but missed expectations of 630k.

While the sales gain was the first in three months, the downward revisions to prior figures indicate that the market in recent months was slower than previously reported, adding to broader indications of cooler demand in residential real estate.

 

On the bright side New Home Sales rose YoY...

 

Median home prices dropped from 328.1K to 320.2K...

Notably, 318,000 new houses were on the market at the end of August, the most since February 2009.

KB Home is down in the pre-market...

But it's not alone as US homebuilder stocks have been hammered, catching down to the ugly reality of US housing data as The Fed hikes rates and crushes affordability...

Perfect time to hike rates today.