New Home Sales Are Solid In August

On a three month moving average, sales increased 1 percent in August, another indication of a steady market.

The median sales price in August was $284,000 with the average sales $353,600. There was estimated 235,000 new homes for sale at the end of August representing a supply of 4.6 months at the current sales rate.

Regionally, home sales slipped month-over-month in all regions except the West where sales gained 8 percent from July. The Northeast was hit hardest with a 34.3 percent MoM decline followed by the South at -12.3 percent and Midwest at -2.4 percent. Compared to August 2015, the Midwest was up 39.7 percent, the West 35.0 percent, and the South 15.9 percent. The Northeast on a year-over-year basis fell 18.8 percent.

“Given the huge jump in sales in July, the August reading remains robust,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill. “Sales are up 21 percent from August last year and year-to-date they are running 13 percent higher, indicating that the housing recovery remains firmly on track.”

“A low supply of homes, a broadening of the market with additional sales growth in lower price points and rising household formation all point to a growing demand for housing as we move into 2017,” said NAHB Chief Economist Robert Dietz.