New Home Sales Rise 5.7 Percent in August
Sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 552,000 units in August from an upwardly revised July reading, according to data released Sept. 24 from 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 and a home builder from Blue Springs, Mo. “Builders are gradually adding inventory to meet future demand as they handle shortages of lots and labor.”
“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 NAHB Chief Economist David Crowe. “The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015.”
Regionally, the Northeast, South and West posted respective gains of 24.1 percent, 7.4 percent and 5.4 percent. The Midwest registered a 9.1 percent decline.
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.