AP
September new home sales rise by 2.7 percent
Monday October 27, 10:24 am ET
By Martin Crutsinger, AP Economics Writer
New home sales post unexpected increase as prices fall to lowest level in 4 years

WASHINGTON (AP) — Sales of new homes recorded an unexpected increase in September as median home prices dropped to the lowest level in four years, the Commerce Department reported Monday.
Sales of new single-family homes rose by 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes, Commerce said. Economists had expected sales would drop from the August level.

The median price of a new home sold in September declined by 9.1 percent from a year ago to $218,400, the lowest price level since September 2004, a period when home prices were rising rapidly as the country experienced a five-year housing boom.

The surprising increase in September sales still left them 33.1 percent below the level of a year ago as the country is battered by the worst slump in housing in decades.

The report on a rise in new home sales followed news last week that sales of existing homes rose in September by 5.5 percent, the largest monthly gain in more than five years.

I find it curious that Mr. Mortgage did not give us his take on this story – normally he is johnny on the spot as he was last friday.

Putting that aside, as Mr. Mortgage explained to us last friday, year over year sales figures mean nothing, month over month are much more relevant in this market.

http://mrmortgage.ml-implode.com/2008/10/24/no-spin-existing-home-sales-down-96-from-augnot-good/

Using Mr. Mortgage’s logic, the increase in Month over Month sales indicates this story is GOOD NEWS, right Mr. Mortgage?

My own personal take is that this is not good news as year over year sales are way down. Thus, I see nothing good here. Yet by Mr. Mortgage’s logic, if he is consistent, he will say since month over month sales are up, this is good news. Anyone want to take bets on whether he will say that?