Sales of newly built, single-family homes increased 18 percent in August to a seasonally adjusted annual rate of 504,000 units, the highest level in six years according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, the National Association of Home Builders (NAHB) reported Sept. 24. New homes sales in August were 18 percent higher than those in July.
In recent surveys, the NAHB indicates builders are seeing increased traffic and more serious buyers in the market for single-family homes. This robust level of new home sales activity is a good sign that the housing recovery is moving toward higher ground. Historically low mortgage rates, attractive home prices and firming job and economic growth should keep the housing market moving forward in 2014.
Regionally, new home sales were up 50 percent in the West, 29.2 percent in the Northeast and 7.8 percent in the South. Sales were unchanged in the Midwest.
The inventory of new homes for sale moved up slightly to 203,000 in August, which is a slim 4.8-month supply at the current sales pace.
The median price of a new home sold in August was $275,000 and the average price was $347,900. At the same point last year, the median sales price was $255,300 and average was $310,800.
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