New home sales are up 7%

August 2, 2019 12:44 pm

New home sales are up 7%, the latest data shows.

Sales of new single-family homes in the United States reached 646,000 in June. That is according to new figures from the U.S. Department of Housing and Urban Development and also the U.S. Census Bureau.

Year-to-date, new home sales for 2019 are 2.2% up on the same period in 2018.

Greg Ugalde, chairman of the National Association of Home Builders (NAHB) admits builders face some issues, despite the rise.

“Though there is a clear demand for new homes, builders continue to wrestle with affordability headwinds, including shortages of buildable lots and skilled labor, that are constraining sales.”

The NAHB expects new home sales to rise 3.5% in 2019.

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage – not yet started, under construction or completed.

The number of new homes for sale in June was 338,000, which is 6.3 months’ supply. The median sales price was $310,400, which is static from a year earlier.

New home sales in the south are 9.5% higher year-on-year.