Sales Of New Homes Rose In September As Builders Cut Prices
Originally published on Wed October 26, 2011 8:35 am
There was a 5.7 percent increase in sales of new homes in September from August, the Census Bureau and the Department of Housing and Urban Development report.
The 313,000 (at an annual rate) pace was still down 0.9 percent, however, from a year earlier.
And the month-to-month gain, as The Associated Press notes, was at least in part due to price cuts by builders, not necessarily an uptick in demand. The median sales price, $204,400, was "the lowest since October 2010," AP says.
Bloomberg News begins its report on the news with this: "Purchases of new U.S. houses rose more than forecast in September as discounted prices lured buyers in some parts of the country."
The news service adds that "the increase in home sales was paced by rising demand in the West and South, while other parts of the country slumped, showing an uneven market that is weighed down by competition from a glut of distressed, previously owned houses."