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.
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.