New Home Sales Rise 5.7% in August
Sales of newly built, single-family homes rose 5.7% to a seasonally adjusted annual rate of 552,000 units in August from an upwardly revised July reading, according to recently released data from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau.
“We continue to hear from our members that more serious home buyers are returning to the market,” said Tom Woods, chairman of the National Association of Home Builders (NAHB). “Builders are gradually adding inventory to meet future demand as they handle shortages of lots and labor.”
Regionally, the Northeast, South and West posted respective gains of 24.1%, 7.4%, and 5.4%. The Midwest registered a 9.1% decline.
“Today’s report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and mortgage interest rates remain low,” said David Crowe, NAHB chief economist. “The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015.”
The inventory of new homes for sale was 216,000 units in August. This is a 4.7-month supply at the current sales pace.
For more information, visit www.nahb.org.