Sales of new homes in the US rose to their highest level in six months in September, highlighting strong potential demand.
Sales of new single-family homes rose 14 per cent month-on-month to an annualised rate of 800000, according to government data released on Tuesday. Economists surveyed by Bloomberg expected a median of 756000 sets.
The data suggest that demand for homes is stabilising in recent months after high house prices and insufficient housing supply pushed the number of contracts below pre-epidemic levels. However, obstacles remain due to a slowdown in housing construction due to persistent supply chains and labour shortages, as well as pressure on buyers from rising mortgage rates.
"demand in the housing sector continues to be strong, but production and supply of many building materials have been severely disrupted and the overall construction cycle is being extended," Ryan Marshall, chief executive of Pulte, said in a statement.