New Home Sales came in lighter than expected in October, coming in at 368,000 units (annualized) vs. expectations for 387,000. Adding to the disappointment was a large -20,000 downward revision to September's numbers to 369,000. And they even went back and knocked off -2,000 to August's count at 368K.
The report noted that Hurricane Sandy had very little impact on the October's numbers.
The New Home Sales report also showed that prices fell as well, dropping -4.2%. Although, it should be noted that the year-over-year numbers still show a 5.7% increase.
Supply however is still relatively low (bullish) standing at just 4.8 months. This compares to supply levels of roughly 9 months in early 2011 and a more typical supply of around 6 months.
After New Home Sales cratered in early 2011, sales have been on a steady incline ever since, a few monthly pullbacks notwithstanding. And the improvement in the housing market has been further underscored by a bevy of other reports showing the housing market on the mend.
So I wouldn't worry too much over this one report. But, anytime you get a surprisingly bad report, it is worth taking notice of to see what happens the next time out to distinguish it from a blip or something potentially more serious.
Chime in on this topic.
Do you think this report is cause for concern?
Or do you think the trend of improvement is firmly intact with plenty more to go?
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