New Home Sales Decline in JulyAugust 23rd, 2018 by Drew Vass
As of July, newly built single-family home sales have gone down 1.7%. This makes the seasonally adjusted annual rate 637,000 units according to the recent report released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales are up 7.2% from July of last year.
“A lack of overall housing inventory is pushing up home prices, which is hurting affordability and causing prospective buyers to delay making a home purchase,” says Randy Noel, chairman of the National Association of Home Builders (NAHB).
“Although this month marks the lowest sales pace since last October, we continue to see solid housing demand due to economic strengthening and positive demographic tailwinds,” adds NAHB senior economist Danushka Nanayakkara-Skillington. “Builders need to manage rising construction costs to keep their homes competitively priced for the newcomers to the housing market.”
There were 309,000 homes for sale in July, which is a 5.9 month supply at the current sales price. Homes are being sold at a median price of $328,700.
In the West, new home sales have risen 10.9% and 9.9% in the Midwest. Sales have fallen 52.3% in the Northeast and 3.3 in the South. Sales are down in the Northeast 14.5% from this time last year due to tax reform impacts and affordability issues.