Newly built homes sales fell the most in nearly a year in August after surging the prior month, while analysts said the broader trend still remain positive.
New home sales fell 7.6 percent in August from prior month to a seasonally adjusted annual rate of 609,000 units, the Commerce Department said on Monday. This marked the biggest one-month drop since September 2015. Sales rose 20.6 percent from a year ago. The Wall Street economists had projected that sales would drop 8 percent to a rate of 602,000 in August.
July sales were revised up 5,000 units to 659,000 units, the highest annualized sales level since October 2007.
“The data are highly volatile, and, through the volatility, the trend still looks upward,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics, in a note to clients.
Geographical, New single-family home sales fell 34.3 percent in the Northeast and 2.4 percent in the Midwest. Sales declined 12.3 percent in the South but rose 8.0 percent in the West.
“The bottom line is that demand for new homes is robust and the supply is not adequately keeping up, which has been a primary theme in the housing sector for quite a while now,” Amherst Pierpont Securities chief economist Stephen Stanley said in a note to clients.News Corp, owner of The Wall Street Journal, also operates Realtor.com under license from the National Association of Realtors.