"Sales of new single-family homes increased 20.5% to a 800,000 annualized rate in a broad advance, according to a government report issued Wednesday. The pace exceeded all estimates in a Bloomberg survey of economists. The surge in demand helped put a significant dent in what's been a vast oversupply of new homes on the market. Last month, the inventory of new homes for sale decreased to 490,000 units, the lowest this year."
"The data suggest US homebuilders are successfully luring buyers off the sidelines with aggressive sales incentives. This month, 39% of builders reported cutting prices in a survey by the National Association of Home Builders and Wells Fargo, a post-pandemic high. Homebuilder Lennar Corp. recently reported offering sales incentives equal to 14.3% of its average sale price, more than double its usual 5% or 6%, Bloomberg Intelligence analyst Drew Reading said in a note."
Sales of new single-family homes rose 20.5% in August to an 800,000 annualized pace, exceeding economist estimates and reducing an oversupply. Inventory of new homes for sale fell to 490,000 units, the lowest this year. A growing share of builders are cutting prices and offering incentives, with 39% reporting price cuts and some, like Lennar Corp., offering incentives equal to 14.3% of average sale price. Shares of homebuilders rose on the report. New-home sales reflect contract signings about a month before closing, and lower mortgage rates have likely supported the surge, though some economists expect future weakness.
Read at Fortune
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