US: New home sales upward trend still in place despite revisions - Wells Fargo

According to analysts from Wells Fargo, the New Home Sales report in the US beat estimates, but they warned about revision’s numbers. They see the upward trend in new home sales still in place. 

Key Quotes: 

“Besting estimates, new home sales rose an unexpected 3.1 percent in September to a 593,000 unit annual  pace. On net, revisions show sales over the past three months were 85,000 less than previously reported.”

“Sales for newly constructed homes rose in September, but downward revisions to previous months’ data somewhat sour the monthly headline reading. On a three-month moving average basis, sales increased 2.0 percent, advancing at an annual rate of 599,000 units, suggesting that despite downward revisions the uptrend in new home sales remains intact. Median prices rose almost 2 percent during the month.”

“Inventory for new homes remains low, with a 4.8-months’ supply of homes available for sale at the current sales pace. During the month, there were only 57,000 new completed homes for sale, and 141,000 are under construction.”