WASHINGTON: Sales of new homes in the United States ended the summer on strong note amid signs of a tightening market, figures released Wednesday showed.
Sales were at an annual rate 593,000 units, up 3.1 percent from August's reading of 575,000, according to the US Commerce Department. Analysts had forecast a pace of 610,000 units for the month.
September was also 29.8 percent above the year-ago pace. The supply of new homes on the market at the current sales rate tightened to 4.8 months, versus 5.8 months in September 2015.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the rising trend might not last, given a decline in mortgage applications.
He also noted a "substantial" downward revision of 85,000 homes for the prior three months, "making the profile of recent new home sales both flatter and more believable."
"Inventory remains low ... so prices will keep rising, but sooner or later sales will run out of steam if mortgage demand does not pick up again," said Shepherdson.
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