The August turbulence in global markets saw New Home Sales, a measure of contract signings of new homes, fall by 7k to 295k annualized, the lowest since Feb and down from 302k in July. The figure was 2k above estimates and July was revised up by a modest 4k. The lowest since at least 1963 was seen in Aug at 278k. Sales did rise in the Midwest but fell in the Northeast and the South and West where the biggest foreclosure competition is occurring. Months supply rose to 6.6 from 6.5 as the absolute number of homes for sale fell by just 2k. The median home price fell by 7.7% y/o/y. Bottom line, this is more of the same at least in the new home market where competition from existing homes remain fierce at the same time more want to rent and those that want to buy have to deal with tougher lending decisions and inconsistent appraisals.
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