Solid growth for August new home sales
Sales of new single-family homes in August rose 7.1% to a seasonally adjusted rate of 713,000, up from the revised July rate of 666,000, according to a Wednesday morning report from the U.S. Census Bureau and Department of Housing and Urban Development.
The report also shows August sales are 18% higher than the August 2018 estimate of 604,000.
“With job growth continuing and lower interest rates in place, builders report rising confidence levels, and this is reflected in today’s solid sales report,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.
The median sales price of new homes sold in August was $328,400. The average price was $402,200.
The seasonally-adjusted estimate of new homes for sale at the end of August is 326,000, representing a 5.5-month supply at the current sales rate.
By region, August sales fell 5.9% in the Northeast and declined 3% in the Midwest. But sales in the South increased 6% and soared 16.5% in the West.
On a year-over-year basis, August 2019 sales compared to August 2018 sales were flat in the Northeast and declined 7.2% in the Midwest. Sales jumped 24.9% in the South and leaped 17.9% in the West, however.
“We have seen a general rebound in the housing market since spring, as sales, starts and permits have all registered gains,” said Danushka Nanayakkara-Skillington, NAHB’s AVP for forecasting and analysis. “However, affordability remains a factor because buyers can’t benefit from lower interest rates if they don’t have the money for a downpayment.”
The report also shows August sales are 18% higher than the August 2018 estimate of 604,000.
“With job growth continuing and lower interest rates in place, builders report rising confidence levels, and this is reflected in today’s solid sales report,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.
The median sales price of new homes sold in August was $328,400. The average price was $402,200.
The seasonally-adjusted estimate of new homes for sale at the end of August is 326,000, representing a 5.5-month supply at the current sales rate.
By region, August sales fell 5.9% in the Northeast and declined 3% in the Midwest. But sales in the South increased 6% and soared 16.5% in the West.
On a year-over-year basis, August 2019 sales compared to August 2018 sales were flat in the Northeast and declined 7.2% in the Midwest. Sales jumped 24.9% in the South and leaped 17.9% in the West, however.
“We have seen a general rebound in the housing market since spring, as sales, starts and permits have all registered gains,” said Danushka Nanayakkara-Skillington, NAHB’s AVP for forecasting and analysis. “However, affordability remains a factor because buyers can’t benefit from lower interest rates if they don’t have the money for a downpayment.”