Sept. New Home Sales 'Better But Still Terrible’

WASHINGTON — New home sales rose 6.6% to a seasonally adjusted annual rate of 307,000 in September, the highest level since June, the ­Commerce Department reported ­Wednesday.

It was the second consecutive monthly gain. Economists expected 300,000 new home sales for the month.

The June sales pace is less than half the 680,490 average rate recorded since record-keeping began in 1963.

“These data indicate that the new home market is still very fragile,” Steven Wood, chief economist at Inight Economics said in a research note ­entitled “New Home Sales: Better but Still Terrible.”

The median sales price for new homes in September rose 1.5% to $223,800 from $220,500 in August. The monthly median price for homes sold the past five years has averaged $231,450. Wood said new home prices appear to be bottoming, but a sustained recovery is unlikely.

“Home sales have been on a roller-coaster ride over the past year-and-a-half because of on-again, off-again home buyers’ tax credits,” Wood said. “With the tax credits now expired, home sales are struggling to find their fundamental level.”

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