New home sales of 800,000 in September (first chart below) was notably higher than economists’ expectations and was the largest month-over-month increase since July of 2020. The jump in sales came in spite of significantly higher prices for new homes, which reached a record high of $408,800.
The Case-Shiller Home Price Index, which tracks prices of existing homes, also exploded to an all-time high in this morning’s release. As shown in the second chart below, home prices have risen by +19.9% versus a year ago, far exceeding all prior periods including the 2005 Housing Bubble. While there is not confirmation that the housing market is facing imminent danger, the excesses that are continuing to mount are historically significant.
