New Home Sales Pull Back in July After Strong Spring Buying Season

Filed in Economics by on August 23, 2017 1 Comment

for sale signSales of newly built, single-family homes in July fell 9.4% to a seasonally adjusted annual rate of 571,000 units from an upwardly revised June reading, according to newly released data by HUD and the U.S. Census Bureau.

Reflecting the month-to-month volatility in new home sales numbers, this was the lowest sales total since December 2016 while June’s 630,000 figure was the second-highest post-recession reading. Meanwhile, year-to-date, new home sales are 9.2% above their level over the same period last year.

“Some pull back in new home sales this month is not surprising after strong May and June readings,” said NAHB Chairman Granger MacDonald. “Builders must continue to manage construction costs to ensure houses remain affordable.”

“The year-to-date growth shows that new home sales continue to trend upward at a steady pace over the longer term,” said NAHB Senior Economist Michael Neal. “Steady economic growth and a healthier labor market suggest that the underlying economic fundamentals remain in place for a continued recovery.”

The inventory of new homes for sale was 276,000 in July, which is a 5.8-month supply at the current sales pace.

Regionally, new home sales increased 6.2% in the Midwest. Sales fell 4.1% in the South, 21.3% in the West, and 23.8% in the Northeast.

For additional analysis, read Neal’s Eye on Housing blog post.

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  1. July new home sales dip after a successful June | August 24, 2017

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