New home sales increased 1% in July to a seasonally adjusted annual rate of 708,000, the U.S. Census Bureau and U.S. Department of Housing and Urban Development reported.
Compared with July 2020, new home sales dropped 27.2%
"Builders will need to watch local home prices relative to incomes, given recent gains in building materials and other construction costs,” stated Robert Dietz, chief economist for the National Association of Home Builders.
Regionally from June to July, new home sales fell 24.1% in the Northeast and 20.2% in the Midwest. The South and West had increases of 1.3% and 14.4%, respectively.
The median sales price for houses sold in July 2021 was $390,500, an 18.4% increase compared with July 2020. The average sales price was $446,000.
The estimated number of new homes for sale at the end of July was 367,000, a supply of 6.2 months at the current sales rate and a 26.1% increase compared with July 2020 inventory.
The full report can be found here.
