New home sales rose 12.4 percent to a seasonally adjusted rate of 654,000 units last month, the highest level since October 2007, according to new data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Find out more details on new home sales from July 2016 in this recent NAHB article.
“This rise in new home sales is consistent with our builders’ reports that market conditions have been improving,” said 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.
[Read the full article here]
