US New Home Sales decline in August - Wells Fargo

According to analysts from Wells Fargo, new home sales were affected by recent storms. They explained that the missing sales activity from the recent hurricanes was apparent in the large drop in sales in the South.

Key Quotes: 

“New home sales fell 3.4 percent in August but the prior month’s sales were revised higher. The Houston metro area accounts for about 5 percent of new home sales, providing an indication of the magnitude of hurricane-related disruptions.”

“Revisions to past months’ data subtracted 28,000 sales from June and May. Most of the correction was in the South, while sales were slightly stronger in the Northeast and West. 

“Inventory of new homes for sale at the end of the period spiked in August, largely in the South. Most of the increase was in homes not yet started or under construction, which is consistent with earlier reported data on completions, which fell sharply. The inventory of completed homes remains near historical lows.”

“New home prices remain firm, reflecting lean inventories and stronger demand in many higher-priced urban markets.”