US new home sales surge to three-year high

In the US, new home sales in August rose significantly more than expected, by 20.5% compared to July, reaching their highest level since January 2022, according to the country's Census Bureau, writes UNN with reference to CNBC.

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This is also the largest monthly increase since August 2022. Sales increased by 15.4% compared to August 2024.

This indicator is based on data on buyers and transactions concluded in August.

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"We expected growth, but not that significant," said Robert Dietz, chief economist at the National Association of Home Builders. "It's always important to remember that the margin of error for new home sales is large. We need to wait for next month's data revision and September data to see if that margin of error smooths out."

Housing market analysis Ivy Zelman of Zelman & Associates said the figures "are generally correct, but their scale is too large." Zelman conducts her own survey with a broader sample covering 15% of homebuilders, and she said it showed a 6% year-over-year increase in sales.

While builders talked a lot about price reductions and incentives, the median price of a new home sold in August was $413,500, an increase of 1.9% year-over-year. In a separate survey by the National Association of Home Builders (NAS) on builder sentiment, 39% reported price reductions in September, up from 37% in August, and the highest figure since the post-COVID-19 pandemic period.

New home sales in the US were most active in the Northeast, where the overall level of new construction is low, so price fluctuations can be significant. They were also high in the South, where housing construction is most active. Sales, although higher, were weakest in the West, where prices are highest.

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