Newly built single-family home sales increased 5.4 percent in July to a seasonally adjusted annual rate of 507,000 units compared with 481,000 in June, according to the U.S. Census Bureau.
The rate is 25.8 percent above the July 2014 estimate of 403,000.
"Our builders are reporting higher traffic and more serious buyers, and are adding inventory in anticipation of future business," said Tom Woods, chairman of the National Association of Home Builders, in a statement.
Regionally, the Northeast, South and West posted gains of 23.1 percent, 5.8 percent and 6.7 percent, respectively. The Midwest decreased 6.9 percent.
Read Next
