Sales of new homes across the US finally rose in July amid a jump in inventories, following a four-month decline.
According to data released by the US Census Bureau on Tuesday, a total of 708,000 new single-family homes traded hands in July, marking an increase of 1% following June’s upwardly revised 701,000. Economists polled by Bloomberg forecast a rate of 697,000. The report also showed that there were a total of 367,000 new homes listed for sale last month, but only about 70% of them were fully completed. Given the current pace, it would take approximately 6.2 months to exhaust the new housing supply, up from 6 months in June.
The government data suggests that home-buying is beginning to stabilize, following a decline that sent transactions plummeting to the lowest since April 2020. Although inventory levels are still constrained, an increase in completed homes has bumped up sales.
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However, demand still continues to outweigh supply, as historically-low borrowing rates, coupled with an appeal for more spacious housing, have caused home prices to soar. The report found that the median sale price of a new house rose 18.4% from July 2020, to a record-high of $390,500.
Information for this briefing was found via the US Census Bureau. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
