New home sales were robust in June, jumping 13.8 percent from May to a seasonally adjusted annual rate of 776,000, according to estimates by the U.S. Census Bureau and the Department of Housing and Urban Development. Sales were 6.9 percent higher than in June 2019 and at the highest rate since the Great Recession..
“While Wall Street may have been expecting a smaller gain, anyone following the NAHB/Wells Fargo Housing Market Index would know these numbers are in line with what we are hearing from builders,” said National Association of Home Builders Chairman Chuck Fowke. “Builders are moving to ramp up production to meet growing demand.”
“Along with rising builder sentiment, we are seeing increasing consumer demand in the suburbs, exurbs and rural areas,” said NAHB Chief Economist Robert Dietz. “At the same time, builders are dealing with supply-side concerns such as rising material costs, particularly lumber, which surpassed its 2018 price peak this week. Nonetheless, low inventory levels point to construction gains ahead.”
The median sales price for new homes last month was $329,200 and the average sales price $384,700.
Inventory stood at 307,000 at the end of June representing a supply of 4.7 months at the current sales rate.
June sales soared 89.7 percent in the Northeast while jumping 18.0 percent in the West, 10.5 percent in the Midwest and 7.2 percent in the South.
Year-to-date data show sales are 0.2 percent higher in the South, 3.1 percent in the West, 12.6 percent in the Midwest, and 22 percent higher in the Northeast compared to the same period in 2019.
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