I wouldn’t read too much into the new homes sales yet. The data is always revised a few weeks later, and the last few months, the revisions have been down. New homes sales consist of contracts signed, and don’t include cancellations. I don’t know if the revised number includes cancellations.
Further, home price sales are cyclical, and one month does not make a trend. The fact is, we have an inventory glut, and months supply is so high, that pricing pressure continues to be downward.
I just found this post by Calculated Risk: “The previous months were all revised down, and the odds are Home Sales for August will be around or under 1 million units when the final estimate is released.”
