New Home Sales Fell In August

Posted by Patrick Barnard on September 26, 2016 No Comments
Categories : Residential Mortgage

New home sales in August were at a seasonally adjusted annual rate of about 609,000, a decrease of 7.6% compared with the revised July rate of about 659,000 but an increase of 20.6 % compared with 505,000 in August 2015, according to estimates released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

The median sales price of new homes sold in August was $284,000; the average sales price was $353,600.

As of the end of August, there were about 235,000 new homes for sale – about a 4.6-month supply at the current sales rate.

“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), in a statement. “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 Robert Dietz, chief economist for NAHB.

Regionally, new home sales decreased by 34.3% in the Northeast, 12.3% in the South and 2.4% in the Midwest. Sales increased 8.0% in the West.

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