Urethane Blog
Good News for Spray Foam
September 27, 2022
New Home Sales Unexpectedly Soar With Second Biggest Increase On Record
by Tyler Durden
Tuesday, Sep 27, 2022 – 10:36 AM
After last month’s jarring 12.6% tumble, which sent the SAAR to the lowest level since Jan 2016, US new home sales were expected to slide again if at a far more moderate pace: instead, we got another shocker because just minutes after Case-Shiller confirmed the first sequential drop in US home prices since 2012, the Census Bureau reported that in August, new homes unexpectedly soared by 28.8% – the 2nd biggest monthly increase on record (only behind the 30.6% spike in June 2020) smashing expectations of a -2.2% drop, and a massive reversal from last month’s upward revised -8.6% drop.
![](https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/new%20home%20change%20sequential_0.jpg?itok=Tb6SBcVC)
And so after 6 declines in the past 7 months, the actual SAAR number of new home sales exploded higher from 532K, the lowest in six years, to 685K, the highest since March!
![](https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/new%20home%20SAARs.jpg?itok=Vn_CNRpH)
Thanks to the unexpected surge in sales, the supply of new homes – which last month hit the highest since 2009 – collapse by more than 2 months, to just 8.1 months of supply.
![](https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/supply_1.jpg?itok=e88VGarf)
And as one would expect, the surge in sales took place as both Median and Average new home sales prices dipped, if just modestly.
![](https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/new%20home%20median%20average%20price.jpg?itok=_j_MtCZZ)
After hitting a record high of $466,300 just last month, the median new home price slumped 6.3% to $436,800 which still is one of the highest prices on record.
![](https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/total%20new%20home%20sales%20vs%20price.jpg?itok=BSJvY_bE)
While the surge in new home sales is likely a delayed aftereffect of yields which dropped in the late summer and have since exploded to the highest level in a decade – which likely assures that next month we may well see the biggest drop in new home sales on record – the Fed will not be happy to see this latest surge in new home sales which will be a sign that even more tightening is required.
https://www.zerohedge.com/energy/new-home-sales-unexpectedly-soar-second-biggest-increase-record
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