US new home sales rise in Sept, adding to housing recovery

24 October 2012 17:05  [Source: ICIS news]

WASHINGTON (ICIS)--US sales of new single-family homes rose by 5.7% in September, the Commerce Department said on Wednesday, a gain that offsets the slight August decline and adds fuel to the housing recovery.

In its monthly report, the department said that sales of new one-family homes were at a seasonally adjusted annual pace of 389,000 last month, up from the downwardly revised August figure of 368,000 units.

The August figure for new home sales originally had been reported as 373,000.

New home sales reports have been up-and-down in recent months, showing an 8.4% drop in June, a 3.6% gain in July, then the modest 0.3% decline in August (now revised to a 1.6% fall). The September data signal a return to upward momentum.

The September gain in single-family housing sales also marks a 27.1% improvement over activity seen in the same month of 2011. 

That solid year-over-year advance is seen as further evidence that the long-awaited US housing sector recovery is well under way.

The advance in sales of new one-family homes comes amid other indications that the housing sector is steadily gaining altitude.

US housing starts shot up by 15% in September, and sales of existing homes saw a nearly 8% increase in August.

In addition, amid steadily improving market confidence among contractors, the National Association of Home Builders (NAHB) recently predicted that the housing recovery is on course to continue through next year and 2014.

The housing market is a key downstream consumer sector for the chemicals industry, driving demand for a wide variety of chemicals, resins and derivative products such as plastic pipe, insulation, paints and coatings, adhesives, roofing materials and synthetic fibres.

The American Chemistry Council (ACC) estimates that each new home built represents some $15,000 (€11,550) in chemicals and derivatives used in the structure or in production of component materials.

($1 = €0.77)

Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy

By: Joe Kamalick
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