ARLINGTON, Va.—New-home sales in August were up 1.5% from July's upwardly revised rate of 729,000 annualized units to 740,000 units.
"New home sales posted another solid gain in August and rose to a four-month high," said Curt Long, NAFCU’s chief economist and vice president of research.
"At the core, tailwinds are strong for new home sales, including low mortgage rates, increasing amounts of Millennials entering their prime homebuying years, and a strengthening labor market," he added. "Shortages of materials like lumber are easing, speeding up timelines for homebuilders, but a recent survey found that 92% of homebuilders are still reporting increased build times versus March."
Sales rose in three regions in August, with the Northeast rising 26.1%, followed by the South rising 6% and the West rising 1.4%. The Midwest fell 31.1% on the month. Compared to a year ago, sales fell in all census regions, but those numbers are still skewed by the boom in home sales after the lifting of COVID-19 lockdowns this time last year.
Half-Year of Supply
Based on current month sales, there were 6.1 months of supply in August, up 0.1 months from July. The number of unsold homes left on the market was up to 378,000 units representing a 32.2% increase from year-ago inventory levels.
The median new-home price, non-seasonally adjusted, was unchanged from $390,900 in July.
"NAFCU expects steady new home sales through the rest of the year, but as with existing home sales, supply and pricing will be the limiting factor in further growth," concluded Long.