Steel Markets

New Home Sales Surge in July

August 23, 2016

New home sales rose 12.4 percent from June to July according to estimates released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

Sales in July were at a seasonally adjusted annual rate of 654,000, 31.3 percent above the year ago level and at their highest level in almost nine years.

The median sales price was $294,600 and the average sales price $355,800. At the end of July inventory stood at an estimated 233,000 representing a 4.3 month supply at the current sales rate. Inventory tightened from a 4.9 month supply in June.

Regionally, sales compared to June were 40.0 percent higher in the Northeast and 18.1 percent higher in the South. Midwest sales increased 1.2 percent and in the West were unchanged from levels in June.

“This rise in new home sales is consistent with our builders’ reports that market conditions have been improving,” said Ed Brady, Chairman, National Association of Home Builders. “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.”