Briefing.com: New Home Sales

Updated: 24-Sep-21 10:21 ET

August New Home Sales

Updated: 24-Sep-21 10:21 ET

Highlights

New home sales increased 1.5% month-over-month to a seasonally adjusted annual rate of 740,000 (Briefing.com consensus 720,000) from an upwardly revised 729,000 (from 708,000) in July.
On a year-over-year basis, new home sales plunged 24.3%, driven by double-digit declines in all regions.

Key Factors

The median sales price increased 20.0% yr/yr to $390,900 while the average sales price jumped 14.7% to $443,200.
New home sales month-over-month/year-over-year by region: Northeast (+26.1%/-37.0%); Midwest (-31.1%/-46.9%); South (+6.0%/-23.0%); and West (+1.4%/-16.3%).
At the current sales pace, the supply of new homes for sale stood at 6.1 months, versus 6.0 months in July and 3.5 months in August 2020. A six-month supply is typically associated with a more balanced market.
The percentage of new homes sold for $399,999 or less accounted for 49% of new homes sold versus 52% in July and 69% one year ago.

Big Picture

The key takeaway from the report is that new home sales momentum has been slowed by cost constraints that are making it less enticing for builders to build lower-priced homes and by affordability pressures that are making it more challenging for prospective buyers to buy higher-priced homes.