New home sales rallied again in July, rising 13.9% to an annual rate of 901k, after substantial gains of 15.1% and 20.5% in June and May. New home sales are mow at their highest since 2006, supported by pent-up demand and rock bottom rates. The current sales pace is 36.3% above the July 2019 annualized sales pace of 661k.
Regionally, new home sales rose in all of the areas of the country last month with the exception being the Northeast, where they declined 23.1% which was a partial reversal of Junes outsized gain. Sales were up 7.8% in the West, 58.8% in the Midwest and 13.0% in the South. The inventory of new homes available for sale fell 1.6% in July from June and were down 8.8% from July of last year.
At 299k, inventory levels represent a 4.0-month supply at the current sales pace. Median new home prices were 7.2% higher on a year-ago basis in July at $330,600.
The latest new home sales report was better than expected and shows that the housing sector has weathered this crisis well with demand holding up despite historic job losses.
**For informational purposes only, used with permission via Economic Focus**
