New Home Sales Dip in September

New Home Sales fell a seasonally adjusted -3.6% in September, defying expectations of a rise of 5%. September marks the first time in six months new home sales have fallen. The pending end of the first home buyer tax credit may have something to with the September numbers given that new home sales needs to occur well before the handout finishes to qualify.

On the positive side, the months supply of inventory is at 7.5 months at the current sales pace, well off the highs of 12.4 months set back in January. As mentioned last week, home sales, both existing and new, will be interesting if and when the tax credit goes away.