New Home Sales Drop To Eight-Month Low

New home sales fell 3.4 percent at a seasonally adjusted annual rate (SAAR) from July to August, declining for the second month in a row. According to Zillow, this is down 1.2 percent from August 2016, and is the lowest rate the market has seen since December 2016.

The declines occurred nation-wide but were largest in the South, partially because of the recent hurricanes. Zillow suggests that the effects of Hurricane Harvey took away about 6,400 units (SAAR) from new home sales in August.

Meanwhile, the overall number of new homes on the market increased by 10,000 units, or 3.6 percent, from July to August. This is the highest level since May 2009 and is up 17.8 percent from last August. The price of a median seasonally adjusted new home sold in August fell 7.5 percent from July’s near-record high of $326,500.

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