Huge Downward Revision In August New Home Sales
New home sales were flat in September after a big downward revision to August's report.
New home sales rose 0.2% to an annualized pace of 467,000 in September, while August's blowout number was revised down to a pace of 466,000 from a prior report of 504,000.
Expectations were for new home sales to fall 6.8% in September to an annualized selling rate of 470,000, down from August's 18% increase to an annualized rate of 504,000.
Last month's report was a blowout, topping expectations for an increase of just 4.4% and marking the biggest beat for new home sales relative to expectations in more than four year.
In a note to clients ahead of the report, Ian Shepherdson at Pantheon Macro said, "We look for mean-reversion today against a rising trend, implying September sales will be reported at about 475K, down from 504K in August. But be prepared for a surprise, in either direction."