Highlights
Sales of new homes are coming at the expense of price. New home sales jumped 5.7 percent in September to a 313,000 annual rate that just exceeds Econoday's outside estimate. The gain is centered in the two largest regions, the South and the West. The rise in sales drew down supply to 6.2 months at the current sales rate for the leanest level in a year-and-a-half and vs 6.6 months in August.

Price contraction is tangible in this report. The median price of $204,400 is down 3.1 percent in the month for the third straight monthly decline. Year-on-year contraction of 10.4 percent is the steepest since the recession days of early 2009. The average price of $243,900 is down 3.9 percent, which is also the third straight decline. Year-on-year contraction is 9.9 percent and is also the steepest since the recession.

The level of sales in this report is positive but other data on the housing sector, including last week's existing home sales report, point to a sector that continues to struggle at lows. Pending home sales data, that is contracts signed for existing homes, will be posted tomorrow.

Market Consensus before announcement
New home sales slipped 2.3 percent in August, to a nine-month low of 295,000 annualized versus 302,000 in July. The level of supply on the market is at a record low 162,000 units. But supply relative to sales remains moderately heavy at 6.6 months at the current sales rate compared to 6.5 months in July. However, sales might rebound somewhat in September as Hurricane Ira likely kept buyers from home shopping in parts of the eastern seaboard.

2011 Release Schedule

Released On: 1/26 2/24 3/23 4/25 5/24 6/23 7/26 8/23 9/26 10/26 11/28 12/23 Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov