August was a busy month for sales on new single-family homes. According to the latest from the Commerce Department monthly report, in August, sales increased 4.8 percent from July’s numbers. This is 43.2 percent above the August 2019 estimate of 706,000, reaching the highest pace since September 2006. The seasonally adjusted annual rate was 1,011,000 in August, up from July’s revised rate of 965,000.
Regionally, new home sales were up in all four regions: 23.6 percent in the Northeast, 23.6 percent in the Midwest, 13.9 percent in the South and 12.4 percent in the West.
Here’s the market breakdown:
New-Home Sales: 1,011,000
For-Sale Inventory: 282,000
Months’ Supply: 3.3 months
Median Price: $312,800
What the Industry’s Saying:
“Surging sales are consistent with record builder confidence levels stemming from higher buyer traffic, historically low interest rates and a shift in demand for lower density markets. However, higher lumber costs and limited building material availability in some markets signify we could see higher prices down the road.” — Chuck Fowke, Chairman, National Association of Home Builders
“New home sales are now 15 percent higher on a year-to-date basis, with gains in all regions. But with inventory at just a 3.3 months’ supply, more construction is needed. The challenge will be whether materials and labor are available.” — Robert Dietz, Chief Economist, National Association of Home Builders