clear
Wednesday November 21st, 2018 5:13AM

After a lull, new-home sales up 3.5 percent in August

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — Sales of new U.S. homes climbed 3.5 percent in August, snapping a two-month decline as buying surged in the pricey Northeast and West housing markets.

The Commerce Department said Wednesday that newly built homes sold at a seasonally adjusted annual rate of 629,000 last month. The pace of sales were revised downward for July and June. Sales of new homes have advanced 6.9 percent this year. Still, rising costs and higher mortgage rates have tempered some of the enthusiasm from would-be buyers.

"Demand has cooled as home prices reached levels that have caused some prospective buyers to balk, while homebuilders seem to be finally making a little headway in supplying the market adequately," said Stephen Stanley, chief economist at Amherst Pierpont Securities.

For the past several years, home prices have consistently increased at a significantly faster clip than incomes. Historically low mortgage rates had helped to ease the mounting costs of purchasing a home, but mortgage rates have been on the rise for the past year.

The shortage of existing homes on the market has driven demand for new construction. That has led to steady growth in new home sales this year, even as sales of existing homes has declined 1.5 percent, according to the National Realtors Association.

"Through the volatility, new home sales data continue to show more strength than the existing home sales data, but there appears to have been some loss of momentum in recent months," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics, a research consulting firm.

Last month's sales gains for new homes mostly came from a 47.8 percent jump in the Northeast and a 9.1 percent increase in the West. New-home sales edged up in the Midwest and fell in the South. The regional figures can be extremely volatile on a monthly basis.

The average sales price has risen 5.2 percent from a year ago to $388,400.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Real Estate
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Senate panel to hear from internet execs on privacy policies
Executives of a half-dozen U.S. internet titans have been summoned by a Senate panel to explain their privacy policies as interest grows in Congress for the government to step in to protect consumers.
11:07AM ( 6 minutes ago )
Blocked US grizzly hunts fuel call for species law changes
A court ruling that blocked grizzly bear hunts in the U.S. West carries far wider political implications amid a push by Congress for sweeping changes to how imperiled species are managed
11:00AM ( 13 minutes ago )
Convicted Danish submarine killer loses appeal
Danish submarine inventor Peter Madsen, convicted of torturing and murdering Swedish reporter Kim Wall last year, lost his appeal against his life sentence Wednesday, shortly after he apologized to the victim's family
10:57AM ( 16 minutes ago )
Associated Press (AP)
Abramovich ends Swiss residency bid after 'defamatory' claim
Swiss officials say Chelsea owner Roman Abramovich has withdrawn an application for residency in Switzerland after authorities made clear it would be rejected
10:42AM ( 31 minutes ago )
Stocks drift as markets await Fed's interest-rate call
Stock markets were trading within narrow ranges Wednesday
10:40AM ( 33 minutes ago )
Daimler CEO Zetsche to step down early, succeeded by insider
Automaker Daimler says that CEO Dieter Zetsche will be succeeded next year by Mercedes-Benz development and research head Ola Kallenius
10:32AM ( 41 minutes ago )
AP Business
Stock markets steady as focus turns to Fed rate decision
Stock markets were trading within narrow ranges Wednesday
8:00AM ( 3 hours ago )
European shares flat, Asia rises ahead as US rate hike looms
European shares flat, Asia rises ahead as US rate hike looms
5:29AM ( 5 hours ago )
The Latest: Markets cautious ahead of Fed rate decision
Financial markets are subdued as investors look ahead to the Federal Reserve's latest policy meeting, at which it is expected to raise its main interest rate for the third time this year.
4:55AM ( 6 hours ago )
AP Business - Economy
US home prices rise at slowest pace in nearly a year
US home prices rise at slowest pace in nearly a year as sales weaken
1:28PM ( 21 hours ago )
Stocks at records; Dow beats all-time high from January
Wall Street delivered another set of milestones as a wave of buying sent U.S. stocks solidly higher, driving the Dow Jones Industrial Average above the all-time high it closed at in January
5:50PM ( 5 days ago )
Dow Jones Industrial Average, S&P 500 trade at record highs
Dow, S&P 500 power to record highs on Wall Street, led by gains in technology stocks including Apple and Microsoft.
2:05PM ( 5 days ago )
AP Business - Real Estate
Senate panel to hear from internet execs on privacy policies
Executives of a half-dozen U.S. internet titans have been summoned by a Senate panel to explain their privacy policies as interest grows in Congress for the government to step in to protect consumers.
11:07AM ( 6 minutes ago )
Convicted Danish submarine killer loses appeal
Danish submarine inventor Peter Madsen, convicted of torturing and murdering Swedish reporter Kim Wall last year, lost his appeal against his life sentence Wednesday, shortly after he apologized to the victim's family
10:57AM ( 16 minutes ago )
The Latest: Trump accuses China of meddling in US election
President Donald Trump says China has been meddling in the November election in the United States
10:56AM ( 18 minutes ago )
Cosby to serve sentence at Philly-area prison
Pennsylvania corrections officials say Bill Cosby will serve his sentence at a new state prison in the Philadelphia suburbs
10:56AM ( 18 minutes ago )
UK Labour leader aims to shift focus from Brexit to economy
British opposition leader Jeremy Corbyn has rallied his Labour Party with a call for a clampdown on unfettered capitalism and a huge investment in public services.
10:47AM ( 26 minutes ago )