After last month's jarring 12.6% tumble, which sent the SAAR to the lowest level since Jan 2016, US new home sales were expected to slide again if at a far more moderate pace: instead, we got another shocker because just minutes after Case-Shiller confirmed the first sequential drop in US home prices since 2012, the Census Bureau reported that in August, new homes unexpectedly soared by 28.8% - the 2nd biggest monthly increase on record (only behind the 30.6% spike in June 2020)  smashing expectations of a -2.2% drop, and a massive reversal from last month's upward revised -8.6% drop.

And so after 6 declines in the past 7 months, the actual SAAR number of new home sales exploded higher from 532K, the lowest in six years, to 685K, the highest since March!