ZCZC
BCN-19
US-HOUSING-SALES-INDICATOR
US new home sales plunge in October, lowest since March 2016
WASHINGTON, Nov 29, 2018 (BSS/AFP) – US new home sales plunged in October,
falling to the lowest level since March 2016 with declines in every region of
the country, the government reported Wednesday.
While the hurricane-ravaged South saw a big decline, the weakness was most
pronounced in the Northeast and Midwest which saw double-digit drops,
according to the Commerce Department data.
Sales of new single-family homes fell just under nine percent compared to
September to an annual rate of 544,000, seasonally adjusted. That was well
below the consensus forecast among economists, who had been expecting 575,000
rate.
However, figures for September were revised sharply higher, to show that
sales increased slightly in the month to 597,000, in contrast to the sharp
decline to 553,000 originally reported.
The monthly figures are always subject to substantial revisions but
economists say the housing sector can provide an early sign the economy is
beginning to stall.
In fact the GDP report released earlier Wednesday showed spending on homes
fell 2.6 percent in the third quarter. While that was offset by business
spending, so that the economy still grew a solid 3.5 percent in the period,
economists expect growth to moderate in the final three months of the year.
Sales in the South dropped 7.7 percent from September, seasonally
adjusted, but the Midwest saw a 22 percent decline and in the Northeast sales
fell 18.5 percent.
But compared to October 2017, sales nationwide fell 12 percent, with large
double-digit declines in every region except the West which was only modestly
lower than the same month of last year.
The median sales price in October was $309,700 compared to $321,300 in the
prior month, and the lowest since February 2017.
BSS/AFP/HR/1000