New Home Sales Surge Over 20% In August, Beats Estimates

New home sales in the United States surged by more than 20% in August, surpassing Wall Street estimates.

According to data released by the Census Bureau and the Department of Housing and Urban Development, sales of single-family houses in August stood at a seasonally-adjusted annual rate of 800,000, beating Dow Jones’ median forecast of 650,000, according to MarketWatch.

According to the report, new home sales in July stood at 664,000, and 693,000 in August 2024. The surge in new home sales in August also reduced the available inventory of new homes during the month, which declined 1.4% to 490,000 units compared to July. However, this was still 4% above the inventory of 471,000 units in August 2024.

As a result, the supply of new homes stood at 7.4 months in August, according to the government report, down from 9 months in July and 8.2 months during the same period a year ago.

The surge in demand also increased the median sales price of new homes,  which rose to $413,500 in August, from $395,100 in July. During the same period last year, the median sales price was $405,800.

Meanwhile, U.S. equities declined in Wednesday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.36%, while the Invesco QQQ Trust (QQQ) fell 0.06%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was down 0.22% at the time of writing.

Also See: Ed Yardeni Draws Parallels To Jerome Powell’s Equity Remarks With Alan Greenspan’s ‘Irrelational Exuberance’ Comments: Report

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