MNI DATA ANALYSIS: US August Home Sales Up 3.5% To 629k SAAR>

--Headline Increase Led By 47.8% Rise in Northeast Region

--August Homes Supply Up 1.6%; Months Supply Falls To 6.1 Months

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - New single-family home sales rose by 3.5% to a 

629,000 annual rate in August, led by an increase in sales in the West 

region, data released by the Commerce Department Wednesday showed. 

     The new home sales pace was slightly below the 630,000 rate 

expected, based on an MNI survey of economists, and followed downward 

revisions to the previous two months. As a result, market participants 

are likely to see the data as a positive sign after recent declines. 

     The sales pace remains well above its year ago level, up 11.1% 

unadjusted from August 2017. 

     New homes sales in July were revised down to a 608,000 pace from 

the 627,000 previously announced rate. The June pace was revised down to 

618,000 from 638,000. 

     When those revisions are incorporated, the third quarter sales pace 

averaged 619,000, down from 635,000 in the second quarter. 

     When broken down regionally, the increase in August headline sales 

was due to a 47.8% increase in the Northeast region. There was a rise in 

the Midwest (2.7%) and West (9.1%) regions, and a decline in the South 

(1.7%). 

--HOME SUPPLY WELL ABOVE YEAR-AGO

     The supply of new homes for sale rose by 1.6% in the month to a 

level of 318,000. The current level of supply is 13.2% higher than a 

year earlier, suggesting that supply is adequate to meet demand. 

     Based on the movements in sales and supply in August, the months' 

supply fell to 6.1 months from the July months' supply of 6.2 months. 

The August months' supply was also up from the August 2017 level of 6.0 

months. 

     Supply of new homes remains fairly high relative to sales, as 

opposed to the very tight supply of existing homes available for sale. 

--MEDIAN SALES PRICE FALLS IN AUGUST

     The median sales price fell by 2.4% to $320,200 from $328,100 in 

July. The median price stands 1.9% above the $314,200 level in August 

2017, suggesting that despite the month over month decline, prices are 

still rising. 

     ** MNI Washington Bureau (202) 371-2121 ** 

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