U.S. new home sales for the month of August fell 7.6% to 609,000 the Commerce Department said on Monday. It was the largest one-month fall since September 2015 but beat the Bloomberg market consensus number of 598,000. New home sales fell in the North-East, Mid-West, and the South and rose in the West.
The report showed that new home sales for July were revised up 5,000 to 659,000, which represents a 13.8% increase from June and is the highest monthly level since October 2007. (See also: Home Depot, Lowe’s To Benefit From Housing Recovery.)
Despite the robust report, home ownership remains at multi-year lows. Last month the Census Bureau said U.S. home ownership fell to 62.9%, the lowest level in over 50-years, somewhat concerning given the current low levels of interest rates. Last week the existing home sales report showed sales fell 0.9% in the month of August to 5.33 million.
Elsewhere, this morning's report from The Commerce Department showed the median house price of new homes sold in August was $284,000, down 5.4% on this period last year, and inventory for the month rose 1.7% to 235,000.
On Thursday the market will get further evidence of the housing recovering with the pending home sales index. Bloomberg analysts are expecting a rise of 0.5% from 111.3 July reading. (Further reading: A Guide to Buying a House in the U.S.)