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U.S. New Home Sales Unexpectedly Surged in August

By Xavier Fontdegloria

 

New home sales in the U.S. increased sharply in August, suggesting a respite in the current housing market slowdown amid high prices and rising mortgage rates. Here are the main takeaways from the Commerce Department's report released Tuesday:

--New home sales increased 28.8% in August compared with the previous month to a seasonally adjusted annual rate of 685,000. This is the highest level since March.

--Economists polled by The Wall Street Journal expected home sales to fall 2.2% to a seasonally adjusted annual rate of 500,000.

--Sales were broadly unchanged compared with the same month a year earlier, when they stood at an adjusted annual rate of 686,000.

--Monthly new residential sales data is volatile and often revised. Data for August came with a margin of error of 18.3 percentage points.

--The median price of a new home decreased to $436,800 in August from $466,300 in July.

--The seasonally adjusted estimate of new houses for sale at the end of August was 461,000. This represents a supply of 8.1 months at the current sales rate.

 

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

 

(END) Dow Jones Newswires

September 27, 2022 10:26 ET (14:26 GMT)

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