New Home Sales Soar in July

“New single-family home sales surged in July, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs,” said Robert Dietz, chief economist for the National Association of Home Builders.

The median sales price rose to $330,600 and the average sales price was $391,300 in July. Inventory at the end of the month was 299,000 units representing a supply of 4.0 months at the current sales rate.

Sales were strongest in the Midwest with sales rocketing 58.8 percent month-over-month, followed by the South up 13 percent and the West up 7.8 percent. Sales fell by 23.1 percent in the Northeast. All regions increased substantially from a year ago.

“The gains for new home sales are consistent with the NAHB/Wells Fargo HMI, which equaled a data series high in August, demonstrating that housing is the leading sector for the economy,” added Dietz. “Consider that despite double-digit unemployment, new home sales are estimated to be 8.0 percent higher for the first seven months of 2020 compared to the first seven months of 2019.”