Sales of newly built, single-family homes rose 12.4 percent in July from a downwardly revised June reading to a seasonally adjusted annual rate of 654,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest reading in almost nine years.
“This rise in new home sales is consistent with our builders’ reports that market conditions have been improving,” said National Association of Home Builders (NAHB) Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “As existing home inventory remains flat, we should see more consumers turning to new construction.”
“July’s positive report shows there is a need for new single-family homes, buoyed by increased household formation, job gains and attractive mortgage rates,” said NAHB Chief Economist Robert Dietz. “This uptick in demand should translate into increased housing production throughout 2016 and into next year.”
The inventory of new homes for sale was 233,000 in July, which is a 4.3-month supply at the current sales pace. The median sales price of new houses sold was $294,600.
Regionally, new home sales rose by 40 percent in the Northeast, 18.1 percent in the South, and 1.2 percent in the Midwest. Sales remained unchanged in the West.