US New Home Sales Rise in September

New U.S. single-family home sales unexpectedly rose in September, pointing to sustained demand for housing even as data for August was revised sharply lower.

The Commerce Department said on Wednesday new home sales increased 3.1 percent to a seasonally adjusted annual rate of 593,000 units last month, pulling them close to a nine-year high touched in July.

August’s sales pace was slashed to 575,000 units from the previously reported 609,000 units.

“We see tremendous growth potential in new home sales as housing demand continues to grow and a continued shortage of newer vintage homes,” said Tian Liu, chief economist at Genworth Mortgage Insurance in Raleigh, North Carolina.

“The limiting factor to that growth will be the limited supply of land and labor, and homebuilders’ focus on higher price segments.”

Economists polled by Reuters had forecast single-family home sales, which account for about 9.8 percent of overall home sales, falling to a rate of 600,000 units last month.

New home sales, which are derived from building permits, are volatile on a month-to-month basis and subject to large revisions.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza