US new home sales decline in September

The HUD and the US Census Bureau reported that new single-family homes, comprising 7.8 percent of the US housing market, has seen a drop in sales in September. The seasonally adjusted annual rate is 468,000 units in the said month, down 11.5 percent from the August figures.

In terms of region, the Northeast had the biggest decrease at 61.8 percent, followed by the South, Midwest, and West at 8.7, 8.3 and 6.7 percent, respectively.

National Association of Home Builders (NAHB) chairman Tom Woods, in an article from the LBM Journal, expressed confidence that “housing is moving in the right direction.” Also, NAHB’s chief economist has pointed out that sales are up by 17.6 percent from the same period last year and the market will be bouncing back at a “gradual but steady pace for the rest of year.”

Other market analysts have the same standpoint. JPMorgan economist Daniel Silver, in a Reuters report, said that he sees other indicators that will be pushing the market up again. These include strong September existing home sales, homebuilder confidence and housing starts.