WASHINGTON - New home sales unexpectedly fell 3.6% in September as the number of new homes available for sale fell to the lowest level almost 27 years, the Commerce Department reported today.
Buyers purchased new homes at a 402,000 annual rate following a downwardly revised 417,000 rate in August.
Economists expected 440,000 new home sales in September, according to the median estimate from Thomson Reuters.
The new homes inventory, which has fallen every month this year, dropped to 251,000, the lowest level since November 1982. The months supply of new homes remained 7.5, the same as the August figure.
New home sales for August and July were revised lower to 417,000 and 413,000 respectively from 429,000 and 426,000, which were reported last month.
The new home median price climbed 2.5% to $204,800 in September, but was down 9.1% from a year ago.
Home sales have been aided this year by the $8,000 tax credit for qualifying first-time buyers. Some members of Congress have advocated for extending the tax credit, which will expire on Nov. 30.
