Washington, DC, October 27, 2005--Sales of new homes rose 2.1% in September according to a Commerce Department report.
Sales increased to a seasonally adjusted annual rate of 1.222 million in September from August's 1.197 million pace, which was revised downwardly fron the originally reported 1.237 million. Sales dropped 11.6% in August.
Sales in September were flat from a year earlier.
Economists were looking for September sales to come in at about 1.24 million units.
Inventories of homes on the market increased to a record 493,000 in September, representing a 4.9-month supply at the current sales pace, the same as in August.
The median sales price increased 1.9% year-over-year to $215,700. Half the homes sold for more than $215,700, half for less. The average sales price increased 6.1% to $285,700.
The sales figures confirm anecdotal accounts that the once-blistering housing market has cooled somewhat. Inventory levels, while still relatively lean, are rising as demand slows, cooling price appreciation.
In the past six months, sales have averaged a 1.27 million annualized, down from 1.29 million a month ago.
In all of 2004, 1.203 million new homes were sold.
