New-home sales increase 20.5% to the highest level since 2022
Despite the record -high turnover, the number of new houses for sale fell slightly to 490,000, which represents a stock of 7.4 months in the current sales pace. That is lower than 9.0 months in July and 8.2 months a year earlier, which reflects a closer inventory.
The data painting a cloudy image of what this means, according to Odeta Kushi, deputy chief economist for First American.
“There is some mixed news on the supply side. According to our analysis of Redfin Data, inventory is higher than a year ago, giving buyers more options, “said Kushi in a statement.” The pace of stock growth, however, slows and remains tight nationally due to historical standards.
“In August, the inventory was still 21%lower than the average of 2015-2019 for the same month. That gorge was smaller in July (17%) and June (15%), which indicates that recovery in the offer is stuck.”
Sturtevant agreed.
“Although the selling numbers of Augustus are good news for the construction of home, it is possible that this is a one -month blip,” she said. “With the inventory of existing houses in the elevator, the new home market can still remain slow until the end of the year. Builders who focus on smaller and more affordable houses are likely to see the strongest question.”
The median selling price for a new house climbed to $ 413,500 in August, an increase of $ 395,100 in July and $ 405,800 a year ago. The average selling price rose to $ 534,100.
Regionally, sales in the northeast and south rose and 72.2% and 24.7% month on month jumped respectively. The Midwest saw an increase of 12.7% compared to the number of July and the West saw a modest increase of 5.6%.
The figures of annual annual tell a different story, although the northeast is still on the rise.
“The increase in new home sales was powered by active buyers in the northeast, where the turnover on an annual basis increased by 40.9%. But the new home sales rose in every region except the West, where sales fell by 5.7% compared to a year ago,” Sturtvant said.
“The housing market hangs in a delicate balance act,” Kushi added. “Lower rates and improvement improvement can be withdrawn buyers, but the tariff locking effect, the dynamics of the labor market and the cooling supply growth continue to dampen the sale of houses. Until these opposite forces are further in favor of greater market activity, the sale of existing at home will probably remain far away.”
