New Home Sales at Highest Pace Since September 2006
On a year-to-date basis in August, new home sales were up in all four regions.
Sales of newly built, single-family homes in August topped the 1 million mark and reached their highest pace since September 2006. Sales increased 4.8% to a seasonally adjusted annual rate of 1.01 million units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The August rate was 43.2% higher than the August 2019 pace.
“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,” said Chuck Fowke, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Tampa, Fla. “However, higher lumber costs and limited building material availability in some markets signify we could see higher prices down the road.”