In September, US new home sales rebounded by 5.7% M/M to a total level of 389 000, slightly above the consensus, which was looking for a increase to 385 000. Sales were mixed across regions as they rose in the Northeast (16.7% M/M), South (16.8% M/M) and West (3.9% M/M), while they fell sharply in the Midwest (-37.3% M/M). The total number of new homes for sale picked up to 145 000, from 143 000, while months’ supply fell from 4.7 to 4.5. On a monthly basis, both mean (-0.5% M/M) and median (-3.2% M/M) prices fell in September. New home sales rose in September to a new cyclical high, the highest level since April 2010, while inventories are near record lows and an encouraging sign too is that homes are staying on the market for far less days. All these data are providing further evidence that the US housing market is finally starting to recover, but inventories are tight, limiting the upward potential for new home sales.