New home sales increased 4.8% in August to a seasonally adjusted annual rate of 1.01 million units, the highest pace since September 2006, according to the National Association of Home Builders.
The August rate is up 43.2% compared with August 2019.
"Surging sales are consistent with record builder confidence levels stemming from higher buyer traffic, historically low interest rates and a shift in demand for lower density markets," NAHB Chairman Chuck Fowke said in a statement.
Regionally, new home sales surged in all four regions year-over-year: 23.6% in the Northeast, 23.6% in the Midwest, 13.9% in the South and 12.4% in the West.
The median sales price of new houses sold in August was $312,800, with an average sales price of $369,000.
New home inventory at the end of August was 282,000, a supply of 3.3 months at the current sales pace.
“With inventory at just a 3.3 months' supply, more construction is needed,” NAHB Chief Economist Robert Dietz stated. “The challenge will be whether materials and labor are available."
The full Census Bureau report can be found here.
