Continuing a trend that was set last month, new home sales increased year over year in July, according to a joint report released by The U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD). The HUD and Census Bureau New Sales Report for July 2018 reports that new single-family homes were sold at a rate of 627,000, which is 12.8 percent higher than the July 2017 estimated rate of 556,000.
While year-over-year sales saw an increase, the July 2018 rate indicated a 1.7 percent drop compared to June 2018. Additionally, the median sales price of new houses sold in July 2018 was $328,700, while the average price was $394,300. This is a slight increase year over year, from July 2017’s median sales price of $322,900 and average sales price of $372,400. Sales prices increased month over month as well, from a median of $310,000 in June 2017 and an average of $369,500.
The increases could mean some alleviation for the ongoing inventory crisis, according to Danielle Hale, Chief Economist for realtor.com.
"Today’s new home sales report won’t entirely put to bed concerns about a housing slow down, but it does give a reason for optimism,” said Hale. “While monthly home sales slipped, yearly growth pushed the three-month average to 8.1 percent, back above what is forecast for 2018 (seven percent). This year’s building and growth in new home sales have helped alleviate shrinking inventories for both new and existing homes which have been a major obstacle to home sales. Now home shoppers are starting to see more choices, but not necessarily in the price range they’re looking."
The Census Bureau and HUD’s seasonally adjusted estimate of the number of homes for sale at the end of July to be around 309,000. At the current sales rate, this number represents a 5.9 month supply.
Find the full report here.
See how new home sales performed in June: