August new home sales scrape bottom, remain flat month-over-month: NAFCU
New homes sales remained flat month-over-month in August at 288,000 annualized units, according to a report released today by the National Association of Federal Credit Unions. Sales are scraping bottom at 28.9% less than one year ago and barely above the record low of 282,000 units in May. "New home sales in August were slightly lower than expected, reflecting an extremely weak new homes market," the report said. "Potential buyers are staying on the sidelines despite record-high affordability conditions as high unemployment, slow job growth, tight credit, and an overall uncertainty about the economic recovery weigh heavily on consumer confidence." Rates of sale varied by region. Sales jumped in the West and Northeast, 54.3% and 16.7%, respectively, while sales declined 26.1% in the Midwest and 10.8% in the South. All four regions saw double-digit declines year-over-year. Sales in the Midwest saw the largest drop at 38.2%, followed by the West at 33.6%, the South at 28.2% and the Northeast at 5.4%. NAFCU reported the median home price at $204,700 in August, down 0.6% from July and 1.2% one year ago. Write to Christine Ricciardi.