Sales of new single-family homes in September reached the highest rate since April 2010, rising 5.7 percent to a seasonally adjusted annual rate of 389,000, according to figures released Wednesday by the U.S. Department of Commerce.
The latest figure eclipsed a revised August rate of 368,000 and is 27.1 percent above the September 2011 estimate of 306,000. The median sales price of new houses sold in September 2012 was $242,400, while the average sales price was $292,400. Currently, the U.S. has a home stock that would last 4.5 months at the current sales rate.
Three out of four regions registered substantial gains in new-home sales this September, including the Northeast's 16.7 percent increase, the South's 16.8 percent increase and the West's 3.9 percent increase. The Midwest was the exception to the rule, with a 37.3 percent decline.
"Combined with consistent, positive reports on housing starts, permits, prices and builder confidence in recent months, today's data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today's exceedingly stringent guidelines."
"New-home sales this year have consistently and significantly out-paced their year-ago levels as favorable interest rates, rising prices and improving consumer confidence have driven demand higher," said NAHB Chief Economist David Crowe. "Meanwhile, despite a small increase in the inventory of new homes on the market in September, the number of completed new homes for sale is now at an all-time low and the month's supply is at its tightest since October 2005. This is an indication that builders continue to have a tough time obtaining construction credit, even as demand for new homes increases."
