Sales of recently built, single-family houses dropped 12.8 per cent to a seasonally adjusted annual rate of 635,000 units in July off a revised up reading in June, 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 4.1 percent greater than the exact same period in 2018.

“Builder confidence continues to trend upward as lower interest rates provide for more favorable buying conditions,” stated Greg Ugalde, chairman of this National Association of Home Builders (NAHB) and a home builder and developer in Torrington, Conn.

“New home sales were sharply revised upward in June to a post-recession high annual rate of 728,000,” stated NAHB Chief Economist Robert Dietz. “While we continue to see volatility in the monthly numbers, sales continue to trend in a slightly positive direction and are in line with our forecast.”

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 July reading of 635,000 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 337,000 at July, representing a 6.4 weeks’ supply. The median sales price was 312,800. The median cost of a new residence sale a year before was 327,500.

Regionally, and also a year-to-date foundation, new home sales are 7.2 percent greater in the South and 9.5 percent higher at the West. Sales are down 15.4 percentage at the Northeast and 12.4 percentage at the Midwest.

Jeff Thornton