New house sales are up 7.1% in August 2019, according to the latest figures.
Sales of newly built, single-family homes reached a seasonally adjusted annual rate of 713,000. That compares with 666,000 in July, revised up from an initial figure of 635,000. So says the latest data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
On a year-to-date basis, new home sales for 2019 are 6.4% higher than the same period in 2018.
NAHB Chairman Greg Ugalde tell why new house sales are up 7.1%. “With job growth continuing and lower interest rates in place, builders report rising confidence levels and this is reflected in today’s solid sales report.”
Danushka Nanayakkara-Skillington, NAHB’s AVP for Forecasting and Analysis, adds that affordability remains a factor.
A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction and also completed. In addition to adjusting for seasonal effects, the August reading of 713,000 units is the number of homes that would sell at this pace for the next 12 months.
The total of new homes for sale was 326,000 in August, which is a 5.5 months’ supply. The median sales price was $328,400. The median price of a new home sale a year earlier was $321,400.
On a year to date basis, new home sales are 11.7% higher in the South.