USA Home Sales increased 0.2 % single-family homes rose to last 6-year high in September, but a sharp downward revision to August month sales pace indicate that the housing recovery leftovers fragile.
The Commerce Department said on Friday that sales increased 0.2 % to a seasonally adjusted yearly rate of 467,000 units, the highest reading last since July 2008.
Economists polled by Reuters had forecast new home sales at a 470,000-unit pace last month. New home sales, which account for about 8 % of the real estate housing market, tend to be explosive month to month and big revisions are not unusual. Compared to September last year, sales were up 17 %.
The Housing is slowly salvaging its footing after action stalled in the second half of 2013 as mortgage rates soared. With the 30-year fixed mortgage rate this week falling to its lowest level since June of last year (2013), sales could pick up.
Slow wage growth, however, remains a restraint. Data this week showed sales of used homes touched a one-year high in September. Last month, new home sales fell 8.9 % in the West, handing back some of August month 28.1 % surge. In the populous South, sales rose 2.0 percent, as they increased 12.3 % in the Midwest.
With sales rising diffidently, the stock of new houses available on the market rose 1.5 % to the top level since July 2010.
At September months sales pace it would take 5.3% months to clear the supply of houses on the market, no changed from August. 6 months' supply is generally considered a healthy balance between supply and order. The median new home price fell 4.0 % to $259,000 from a year ago.
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