What The Media Missed In September’s New Home Sales Report
Today is one of those days.
- New Home Sales fall a surprising 3.6%
- Surprise Drop In New Home Sales
- Stocks slide as New Home Sales fall
But the headlines miss the point, somewhat. Yes, home sales volume is important to housing, but it’s not as important as home supply.
A deeper look at the New Home Sales data reveals an interesting comparison point:
- New home sales volume fell 3.6%
- The number of new homes available for sale fell 3.8%
In other words, sales outpaced supply — a running theme this year and a positive signal for housing.
Since peaking in January 2009, the supply of newly-built homes has now dropped by 40 percent. The average sale price is up 15% over the same period.
This is why you can’t get your real estate news from the headlines. You have to dig a little bit deeper to get the real story.