The sales pace of newly built single-family homes increased 6.5 percent for the month to a record seasonally adjusted annual rate of 1.410 million units in July, the U.S. Commerce Department reported. The rate was 27.7 percent above the July sales pace of a year ago.
“It is clear that the demand for new homes remains strong, but it should be noted that the Commerce Department’s estimates of monthly home sales are subject to a high degree of sampling variability as well as to substantial revision, especially on a regional basis,” said NAHB Chief Economist David Seiders.
Two of four regions across the country posted increased sales of new homes in July. Sales in the Northeast were up 10.1 percent and sales in West jumped 36 percent from the month before. Sales in the South were down 3.5 percent and sales in the Midwest dropped 13.5 percent.
“This report on new homes sales is stronger than other housing data for July, including the report on sales of existing homes and NAHB’s Housing Market Index that’s based on our surveys of single-family home builders,” Seiders noted. “Indeed, existing-home sales edged down in July and the component of our builders’ survey that measures current sales activity moved down a bit in both July and early August.
“More data obviously will be required to determine the true direction of the housing market for the remainder of the summer months,” Seiders added.