What Pandemic? New-Home Sales Increase for Third Consecutive Month Reaching 13-Year High

Dated: August 26 2020

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New-home sales increased in July for the third consecutive month, going up 13.9 percent above the revised June rate of 791,000 and 36.3 percent above the July 2019 estimate of 661,000, according to the latest Commerce Department monthly report.  Sales of new single-family homes in July were at a seasonally adjusted rate of 901,000.

 

Here's the market breakdown:

New-Home Sales: 901,000

For-Sale Inventory: 299,000

Months' Supply:  4.0 months

Median Price: $330.600

 

What the Industry's Saying:

 

"This is exactly what NAHB's builder confidence survey has been indicating in recent months. Consumers are being driven by low interest rates, a growing focus on the importance of housing and a shift in buyers seeking homes in lower density areas.  Despite these positive conditions, affordability challenges remain especially as builders are dealing with building cost increases, including a dramatic rise in lumber costs in recent months." — Chuck Fowke, Chairman, National Association of Home Builders

"New home sales are benefitting from the suburban shift, as prospective buyers seek out affordable markets in order to obtain more residential space. Moreover, sales are increasingly coming from homes that have not started construction, with that count up 34 percent year-over-year. In contrast, sales of completed, ready-to-occupy homes are down almost 24 percent. These measures point to continued gains for single-family construction ahead." — Robert Dietz, Chief Economist, National Association of Home Builders

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Lauren Gontero

As a Las Vegas native, I witnessed its great transformation – from a desolate desert into a bustling metropolitan city that retains its small-town feel. My intimate knowledge of this region, and my ....

1 comments in this topic

  • Posted by Lauren Gontero
    08/26/2020
    Is low inventory driving prices up so high?

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