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New Single-Family Sales Hit a Record Pace in June
Sales of new single-family homes surged to an all-time seasonally adjusted annual rate of 1.374 million units in June, according to estimates released last week by the U.S. Commerce Department, which was 4% higher than May’s upwardly revised sales pace and 14% above the sales rate one year earlier.
"Builders expected June numbers to be very strong," said NAHB President David Wilson. "We survey single-family builders regularly, and they indicated that they were solidly optimistic about July."
"The housing market turned in another solid performance throughout the second quarter, showing the strength of demand," said NAHB Chief Economist David Seiders. "A strong economy and favorable market fundamentals, including a low and stable mortgage rate structure, growing employment and increases in household income, are driving the market."
June’s new home sales pace quickened in all four regions of the country, with a 7.2% increase in the Northeast, 5.1% in the South, 2.8% in the West and 2.1% in the Midwest.
The median price for new homes sold in June was $214,800, down from $227,400 in May, probably reflecting a change in the regional and market segment mix of sales, according to Seiders.
The inventory of new homes for sale was 454,000, a 4.0 months' supply at the June sales pace.
"The inventory situation remains very manageable,” Seiders said. “More than 56% of the homes included in the inventory are under construction and a record 22.3% have not been started yet. Because of the limited amount of land available for building in many areas and in anticipation of increased mortgage rates in the coming months, builders' inventories are very lean."
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