Seasonally adjusted new home sales for July came in better than expected, but prices declined. Given the market's initial reaction, it is assuming that the better numbers lower chances of a QE, as we have mentioned before. We will see if losses will be pared yet again by the close with hope that something will come out of the Jackson Hole conference and if not, out of the Sept. FOMC meeting.
- Annualized rate of 372K new home sales for July were slightly higher than the 368K consensus. This figure showed a Y/Y 25.3% increase. In addition, the June sales figure was revised up.
- The months' supply dipped to 4.6 from 4.8 in June. Although it appears that inventory has declined or remained flat, we note that both mean and median prices declined sequentially and Y/Y.
- Monthly increase in sales was driven by a 76.5% spike within the Northeast region. Sales in the West and Midwest declined slightly from June.
- On a Y/Y basis, sales increased in every region, led by a 68.3% increase in the West.
- Most of the homes sold were in the $200K - $299K price range, similar to June and last year.
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