Record Reported for New Home Sales in July
The sales pace of new single-family homes increased 6.5% in July to a record seasonally adjusted annual rate of 1.410 million units, which was 27.7% above the sales pace of a year earlier, the U.S. Commerce Department reported last week.
“It is clear that the demand for new homes remains strong, but it should be noted that the Commerce Department’s estimates of monthly home sales are subject to a high degree of sampling variability as well as to substantial revision, especially on a regional basis,” said NAHB Chief Economist David Seiders.
Regionally, sales climbed 10.1% in the Northeast and went through the roof with a 36% spurt in the West, it was reported. Sales were down 3.5% in the South and 13.5% in the Midwest.
“Today’s report on new homes sales is stronger than other housing data for July, including the report on sales of existing homes and the NAHB/Wells Fargo Housing Market Index that’s based on our surveys of single-family home builders,” Seiders noted. “Indeed, existing-home sales edged down in July and the component of our builders’ survey that measures current sales activity moved down a bit in both July and early August.
“More data obviously will be required to determine the true direction of the housing market for the remainder of the summer months,” Seiders added.
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