This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New-Home Sales Flat in August

(Updated with additional information and stock prices.)

NEW YORK ( TheStreet) -- Sales of newly built homes were flat in August at a seasonally adjusted annual rate of 288,000, the Commerce Department said Friday morning. The figure came in below expectations for a rate of 291,000 after an all-time low rate rate of 276,000 in July.

July's results were originally reported at a sales pace of 276,000, the worst on record until Friday's adjustment to 288,000. May's new-home sales pace of 282,000 was the slowest pace on record.
New Homes

While the date came in below expectations and activity in the still-struggling housing market remains muted, it does point to some sense of stabilization.

The report came a day after the National Association of Realtors showed existing-home sales rebounded 7.6% in August to a better-than-expected seasonally adjusted annual rate of 4.13 million units.

August's new-home sales rate represented an 11% decline from year-earlier results.

The median sales price for new houses sold in August fell 0.6% to $204,000, the report said, the lowest since December 2003, while the average selling price was $248,000. The median price was 1.2% lower than year-earlier results. There were 206,000 new homes for sale at the end of August. Inventory fell 1.4% to the lowest level since August 1968. It would take 8.6 months to work through current inventory at the current sales pace.

Stocks in the homebuilder sector were mostly higher in trading on Friday morning, on a broadly bullish day for the market with U.S. equities looking to close the week with their fourth-consecutive weekly gain. The SPDR S&P Homebuilders (XHB), an exchange-traded fund that tracks the homebuilder sector, gained 2.8%. The iShares Dow Jones US Home Construction (ITB) rose 2.9%. NVR (NVR - Get Report) added 1.5%, D.R. Horton (DHI - Get Report) 3.6%, PulteGroup (PHM - Get Report) 4.3% and Toll Brothers (TOL - Get Report) 3.2%.

Lennar (LEN - Get Report) added 4.2%. Lennar said Monday it returned to year-over-year profitability, beating quarterly expectations on higher revenue and a greater number of home deliveries.

>>Lennar Beats on Return to Profitability
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DHI $30.36 0.00%
ITB $26.79 0.00%
LEN $45.79 -0.02%
NVR $1,661.61 -0.22%
PHM $18.52 0.03%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs