ARLINGTON, Va.—New home sales rose to 776,000 units in June, up 13.6% from May's revised rate of 682,000 annualized units and 6.9% from a year ago.
"New home sales jumped this month to pre-COVID-19 levels, even posting a strong year-over-year rise overall,” said NAFCU Chief Economist and Vice President of Research Curt Long. “This recovery is likely due to the release of pent-up demand, low interest rates, and the fact that most job losses thus far have hit low-wage workers.”
Sales grew all four regions during the month, rising 89.7% in the Northeast, the West 18%, the Midwest 10.5%, and the South 7.2%.
Based on current month sales, there were 4.7 months of supply in June, down from 5.5 months in May. The number of unsold homes left on the market also declined to 307,000 units and represented a y% reduction from year-ago inventory levels.
Keeping Sales Afloat
“A new round of fiscal stimulus should keep home sales afloat as long as the labor market does not experience a substantial deterioration from where it is currently,” Long continued. “The shortage in home listings may be shifting some sales from existing to new homes.
“NAFCU expects the housing market to continue to play a critical role in supporting the overall economy,” concluded Long.
Of note, the median new home price increased from $310,200 (non-seasonally adjusted) in May to $329,200 in June. This month’s prices are up 5.6% from a year ago, Long said.