October 23, 2021

MP Now News

Mortgage News

New Home Sales Recovery Continued in August

Sale of new housing carried out better than expected in August, but remain well below the pace set in August 2020. The US Census Bureau and the Department of Housing and Urban Development say sales for the month were at a seasonally adjusted annual rate of 740,000 units. That’s 1.5 percent above the July pace of 729,000, a rate revised up 21,000 units from the original estimate.

It was the second month that new home sales rose after dismal May and June sales, with a total loss of more than 100,000 units. The July and August increases still leave annual sales down 24.3 percent from the August 2020 rate of 977,000 units.

Analysts for Econoday expected sales to remain at the price of 708,000 units reported for July. The respondents from Commercial economics would have forecasts an increase of 0.5 percent to 714,000 units.

Unadjusted, 62,000 new apartments were sold in August, compared to 64,000 in July. Sales totaled 556,000 units in the first eight months of 2021, compared to the same period in 2020 when 543,000 were sold.

The median The price of a new home rose from $ 325,500 in August 2020 to $ 390,900 last month. The average price was $ 443,200, down from $ 386,300 last year.

At the end of the reporting period there were 378,000 new homes for sale, an estimated supply of 6.1 a month at the current turnover rate. Of these, however, only 36,000 units are ready to move in, while 105,000 apartments are only in the planning stage.

Selling new homes in the Northeast were 26.1 percent higher than in July, but 37.0 percent lower than last year. the Middle West
was the only region to see a 31.1 percent month-over-month decline in August, down 46.9 percent on an annualized basis.

Sales rose 6.0 percent in south and 1.4 percent im west, but both regions are down double digits from their August 2020 rates. The decreases were 23.0 percent and 16.3 percent, respectively.