ARLINGTON, Va.—New-home sales spiked 18.9% in September to 667,000 annualized units – the fastest sales pace since October 2007. September's sales did not appear to be negatively impacted by Hurricanes Harvey and Irma, said NAFCU Research Assistant Yun Cohen in a NAFCU Macro Data Flash report.
"Sales of properties where construction has not yet started rose 43.9% during the month, which indicates strong buyer demand and likely some storm-related construction backlogs," Cohen said.
"With rebuilding needs exacerbating the shortage of construction labor, new-residential construction slowed in September and will likely be constrained in the next few months," she added. "Rising material costs are also contributing to the lack of affordable inventory."
According to Census Bureau data, September's new-home sales represent a 17% increase from a year ago. Sales improved in all four regions in September: the Northeast rose 33.3%, the South 25.8%, the Midwest 10.6% and the West 2.9%, Cohen noted.
Based on current-month sales, there were five months of supply in September, down from six months in August. The median new-home price, non-seasonally adjusted, rose from $303,800 in August to $319,700 in September. September's prices were 1.6% higher than a year ago, Cohen noted.