New home sales unchanged in August

Moving activity remained stagnant in August after dropping in July.

The Commerce Department reported that home sales of new single-family homes in August held steady at a seasonally adjusted rate of 288,000 units. That was also 28.9 percent below new home sale levels from August 2009, indicating how depressed the relocation market remains and how few people are packing up their moving boxes at the moment.

The median sales price only increased slightly in August, to $204,700 from $204,000 the previous month. Relocating families also paid a higher average sales price for their new home last month, $248,800, up from $235,300 the month before.

The national home inventory shrunk slightly, from a 8.7 month supply to an 8.6 month supply last month, giving moving families roughly the same amount of homes to choose from nationwide.

Regionally, only the Northeast and West saw improving new home sales activity. Roughly 35,000 homes were sold in August in the Northeast, up from 30,000 the month before, while relocating homebuyers purchased 71,000 units out West, an increase from July's 46,000 sold units.

Rising new home sales are especially encouraging in the West, where rising foreclosures and a poor jobs market have reduced the number of people moving to hard-hit states such as Nevada and Arizona.
 

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