Newsroom
July 26, 2016
June's new-home sales hit post-recession high
New-home sales rose in June to a post-recession high of 592,000 seasonally adjusted annual units – up 3.5 percent from May's upwardly revised sales – and logged the fastest sales pace since February 2008, NAFCU Research Assistant Yun Cohen noted in Tuesday's NAFCU Macro Data Flash report.
June's new-home sales represent a 25.4 percent increase in sales from a year ago, according to data from the Census Bureau report. May's new-home sales were upwardly revised to 572,000 annualized units.
"Demand for housing has been firming as a result of a strong labor market, low-mortgage rates and higher rental prices," Cohen said. "The sales pace for new homes averaged 544,000 annual units in the first half of 2016, the highest six-month-average since 2008."
However, Cohen added that "housing starts have largely been trending sidelines recently." She said the "lack of available homes for sale continues to limit buyers' choices and put upward pressure on prices."
Sales increased in two of the four regions during June. The West increased 10.9 percent, followed by the Midwest (+10.4 percent). Sales decreased 5.6 percent and 0.3 percent in the Northeast and the South, respectively.
Based on current month sales, there were 4.9 months of supply in June, which is down from May's 5.1 months. The number of unsold homes left on the market increased from 241,000 to 244,000 units, which represents a 13 percent increase from a year ago.
The median new-home price, non-seasonally adjusted, increased from $288,800 in May to $306,700 in June. Prices were up 6.1 percent in June from last year.
June's new-home sales represent a 25.4 percent increase in sales from a year ago, according to data from the Census Bureau report. May's new-home sales were upwardly revised to 572,000 annualized units.
"Demand for housing has been firming as a result of a strong labor market, low-mortgage rates and higher rental prices," Cohen said. "The sales pace for new homes averaged 544,000 annual units in the first half of 2016, the highest six-month-average since 2008."
However, Cohen added that "housing starts have largely been trending sidelines recently." She said the "lack of available homes for sale continues to limit buyers' choices and put upward pressure on prices."
Sales increased in two of the four regions during June. The West increased 10.9 percent, followed by the Midwest (+10.4 percent). Sales decreased 5.6 percent and 0.3 percent in the Northeast and the South, respectively.
Based on current month sales, there were 4.9 months of supply in June, which is down from May's 5.1 months. The number of unsold homes left on the market increased from 241,000 to 244,000 units, which represents a 13 percent increase from a year ago.
The median new-home price, non-seasonally adjusted, increased from $288,800 in May to $306,700 in June. Prices were up 6.1 percent in June from last year.
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