New Home Sales Mark Six-Month Low in August
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Data from the Department of Commerce Monday showed a better-than-expected reading of new home sales for the month of August. The beat gave no hope to homebuilders and investors, however, as the metric tumbled to a six-month low.
Purchases of brand-new US homes last month fell about 7,000 units to 295,000, above the 293,000 economists on the Street had been looking for. Compared to July, new home sales fell 2.3 percent from an upwardly-revised reading of 302,000. The initial new home sales figure for July came in at 298,000.
On a year-over-year basis, new home sales for the month tumbled 7.7 percent.
A consistent decline in the price of previously-owned homes amid a flood of foreclosures has kept buyer interest away from the new-home segment.
The SPDR S&P Homebuilders ETF (NYSE: XHB) ticked lower following the data point. After falling as much as 0.8 percent versus Friday's close, the fund is now up 1.3 percent.
Players in the homebuilding market will get a reading from the S&P/CaseShiller home price index Tuesday, September 27th and a reading on pending home sales for August on Thursday, September 29th. Economists are currently expecting a 1.9 percent sequential decline in pending home sales.
Purchases of brand-new US homes last month fell about 7,000 units to 295,000, above the 293,000 economists on the Street had been looking for. Compared to July, new home sales fell 2.3 percent from an upwardly-revised reading of 302,000. The initial new home sales figure for July came in at 298,000.
On a year-over-year basis, new home sales for the month tumbled 7.7 percent.
A consistent decline in the price of previously-owned homes amid a flood of foreclosures has kept buyer interest away from the new-home segment.
The SPDR S&P Homebuilders ETF (NYSE: XHB) ticked lower following the data point. After falling as much as 0.8 percent versus Friday's close, the fund is now up 1.3 percent.
Players in the homebuilding market will get a reading from the S&P/CaseShiller home price index Tuesday, September 27th and a reading on pending home sales for August on Thursday, September 29th. Economists are currently expecting a 1.9 percent sequential decline in pending home sales.
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