US New Home Sales: Housing continues to slow - Wells Fargo

Sales of new homes fell 5.5% in September in the US. According to analysts from Wells Fargo, the slide appears to be demand driven.

Key Quotes: 

“The 5.5% drop in new home sales in September marks the fourth consecutive monthly decline. Sales declined 12% in the West and 1.5% in the South, which together comprise around 80% of all new homes sales. Hurricane disruptions appear minimal.”

“The median new home price fell 3.5% from last September to $320,000. The drop reflects the impact of rising mortgage rates and a shift toward more modestly priced homes.”

“By nearly all accounts, the slide in new home sales appears to be demand driven and is not due to supply constraints. As such, single-family starts will likely fall further in coming months.”