Steel Markets

New Home Sales Rebound in August

September 25, 2019

New home sales rose a solid 7.1 percent in August and jumped 18 percent from a year ago, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales in August were at a seasonally adjusted annual rate of 713,000.

“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,” said National Association of Home Builders Chairman Greg Ugalde.

The inventory of new homes for sale was estimated at 326,000 in August, representing a 5.5-months’ supply at the current sales pace. The median sales price was $328,400, a 2.2 percent increase from $321,400 in August 2018.

Sales rose 11.7 percent in the South and 7.8 percent in the West. Less activity was seen in the Northeast and Midwest with sales down 16.5 percent and 10.5 percent, respectively.

“We have seen a general rebound in the housing market since spring as sales, starts and permits have all registered gains,” said Danushka Nanayakkara-Skillington, NAHB’s acting vice president 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 down payment.”