Sales of recently built, single-family houses climbed 7.1 per cent to a seasonally adjusted annual rate of 713,000 units in August off a revised up reading in July, based on recently released data from the U.S. Department of Housing and Urban Development along with the U.S. Census Bureau. On a year-to-date foundation, new home sales for 2019 are 6.4 percent greater than the exact same period in 2018.

“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,” stated Greg Ugalde, chairman of this National Association of Home Builders (NAHB) and a home builder and developer in Torrington, Conn.

“We have seen a general rebound in the housing market since spring, as sales, starts and permits have all registered gains,” stated 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.”

A new residence sale happens when a sales contract is signed or a deposit is approved. The residence could be at any stage of building: not started, under construction or completed. In addition to adjusting to seasonal effects, the August reading of 713,000 units is that the number of houses that could sell whether that rate continued for another 12 weeks )

The stock of new houses available has been 326,000 at August, representing a 5.5 weeks’ supply. The median sales price was 328,400. The median cost of a new residence sale a year before was 321,400.

Regionally, and about a year thus far, new home sales are 11.7 percent greater compared to South and 7.8 percent greater compared to West. Sales are down 16.5 percentage at the Northeast and 10.5 percentage from the Midwest.

Jeff Thornton