In the month of September, the sale of new homes in the United States raced up to about a surprisingly ten year high. The sales of single family new homes in the US unexpectedly rose in the month of September which has hit the highest level as compared to the last ten years. This has offered great hope to the real estate market and was regaining the speed which it has lost in the past few months. On Wednesday, the commerce department stated that the sale of new homes increased about 18.9 percent to a seasonally adjusted annual rate of 667,000 units in the last months among an increase in all of the four regions. This was the highest level since October 2007 which was followed by the revised upward sales in August 2017 at the sales pace of 561,000 units. This particular gain in the percentage was the largest since January 1992.
The Economists polled by Reuters had previously forecasted the rising sale of new homes which accounts for the eleven percent of the overall sale of homes falling by 0.9 percent to about only 555,000 units in the previous month. The sales of new homes, which are drawn from permits, are volatile on a monthly basis. The sales rose by 17 percent on a yearly basis in the month of September. The real estate market has slowly stepped up in this year, among shortages of homes that are available for sale, skilled labor and suitable land for building. The sale of homes was also hampered to a great extent due to killer Hurricanes, Harvey and Irma, which weighed on home building in September and badly affected the sales of previously owned homes in the South. Housing is expected to have been a drag on economic growth in the third quarter of the year.
In September, new single-family home sales rose up to more than about nine and a half years high in the Northeast. The sales in the South hit their highest level since July 2007. In the regions of West and Midwest, there were strong gains in the percentage as well in the previous month. More than about two-thirds of the new homes that were sold in the previous month were either under construction or have yet to begin construction. With sales suddenly propelling in September, the inventory of new homes on the market remained the same at 279,000 units.