Sales of new single-family homes rose 3.6 percent in July, increasing to a seasonally adjusted annual rate of 372,000 from 359,000 in June, according to the latest figures from the U.S. Department of Commerce released today. The current rate is 25.3 percent higher than the July 2011 estimate of 297,000.
The seasonally adjusted estimate of new homes for sale at the end of July was 142,000, representing a 4.6-month supply at the current sales rate. Meanwhile, the median sales price for homes sold in July was $224,000, while the average sales prices was $263,200.
"Sales of new homes in July returned to the same solid pace they set in May, which was the fastest sales rate we'd seen in more than two years," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today's very favorable prices and interest rates."
Regionally, the Northeast posted the biggest gain in new-home sales with a 76.5 percent increase in July from an abnormal low in the previous month. The Midwest posted a 7.7 percent gain while the South and West registered declines of 1.6 percent and 0.9 percent, respectively.
"Today's good report is the latest indicator of a gradual, upward trend that we expect to continue through the remainder of this year," said NAHB Chief Economist David Crowe. "The fact that the inventory of new homes for sale reached an all-time low in July is a worrisome signal that ongoing, unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves."
