In July, the United States witnessed a notable increase in new home sales, with an impressive double-digit percentage rise, according to government data released on Friday. This upward trend comes even as median prices across the nation have climbed for the second consecutive month. Specifically, single-family home sales saw an 11% month-over-month advancement, reaching an adjusted annual rate of 739,000.
This figure is an increase from the previously revised rate of 668,000 recorded in June, as reported by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). Market analysts had predicted sales to settle at 623,000, which would have represented a modest 1% increase from earlier estimates.
However, the actual results exceeded expectations, reflecting a 5.6% year-on-year growth in new home sales. The rise in sales was consistent across all four U.S. regions, with the West leading the charge, marking a remarkable 34% increase. Meanwhile, sales in the Northeast, South, and West regions experienced modest single-digit growth, while the Midwest region achieved a notable 17% rise. In terms of pricing, the median price for new homes surged to $429,800 in July, marking the highest level since March.
This represents an increase from June's median price of $416,700 and a further increase from $408,300 reported in the previous month. New home supply dynamics are also notable. At the sales rate reported in July, available new home inventory reached 7.5 months, a decrease from June's 8.4-month supply.
However, this figure reflects a 2.7% increase compared to the same period last year. The Census Bureau and HUD data indicated that, although the seasonally adjusted estimate for new homes available for sale at the end of July decreased by 1.1% sequentially, it showed an annual increase of 8.2%, reaching a total of 462,000 homes. In related news, data from the National Association of Realtors released on Thursday highlighted additional trends in the housing market.
Existing home sales experienced a 1.3% month-over-month increase in July due to a decline in unsold inventory. However, compared to the same time last year, existing home sales saw a decrease of 2.5%. Overall, these metrics indicate a growing yet fluctuating landscape in the U.S. housing market, characterized by rising prices and varying supply and demand dynamics..