Sales of new homes saw a 3.5 percent boost in August, rebounding slightly after lulls in June and July, which saw declines of 5.3 percent and 1.7 percent in sales in June and July, respectively, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
August’s sales reached a seasonally adjusted annual rate of 629,000, a 12.7 increase compared with August 2017.
National Association of Home Builders Chairman Randy Noel credited the uptick to positive demographics and a strong overall economy but warned about the impact of the continued housing affordability concern on the industry. The median sales price of new houses in August was $320,200, with the average sales price being $388,400.
“Housing affordability has taken a toll on new home sales over the summer, and there could be market volatility in the months ahead as communities grapple with the aftereffects of Hurricane Florence,” NAHB Chief Economist Robert Dietz said in a statement. “Still, we expect the overall housing market to grow this year as demand continues to increase among millennials and other newcomers.”
New home sales soared 47.8 percent in the Northeast during August and jumped 9.1 percent and 2.7 percent in the West and Midwest, respectively. The South saw a decline of 1.7 percent.
