Existing New Home Sales Increase by 5.7 Percent in September

According to a recent report from the National Association of Home Builders, in September the number of new homes sold in the US increased from 296,000 in August to 313,000. The number for new homes for sale remained relatively flat at 163,000. This represented approximately 6.2 months supply, which is significantly below the 8.5 months supply of existing homes for sale, which was reported by the National Association of REALTORS.

It is reasonable to assume that the new home construction market may have reached a bottom and should be poised for a rebound. New home sales have been relatively flat since the beginning of 2010 and the month’s supply number is at its lowest level. Still lending standards continue to be an impediment to a recovery of the home building market.