Updated: 23-Aug-17 11:00 ET
|Updated: 23-Aug-17 11:00 ET
- New home sales for July were at a seasonally adjusted annual rate of 571,000 (Briefing.com consensus 615,000), down 9.4% from the revised June rate of 630,0000 (from 610,000) and down 8.9% from the same period a year ago.
- Taking into account the upward revisions for the prior three months, which cumulatively added 46,000 new home sales, the July sales rate was not as big of a shortfall as it appears at first blush.
- On a seasonally adjusted basis, the only region that saw a month-over-month increase in sales was the Midwest (+6.2%). The South and the West, which are the largest regions for new home sales, saw monthly declines of 4.1% and 21.3%, respectively. The Northeast was down 23.8%.
- Limited inventory at lower price points and higher average selling prices continued to act as headwinds for new home sales.
- The median sales price increased 6.3% year-over-year to $313,700 while the average sales price increased 4.6% to $371,200
- There were fewer homes sold in July versus June across all price points under $399,999. The share of new homes sold in July at $399,999 or less held steady, however, at 70%.
- Based on the July sales pace, the inventory of new homes for sale stands at a 5.8-months' supply versus 5.2 months for June
- The key takeaway from the report is that new home sales growth is continuing at a frustratingly slow pace despite the tailwinds of low mortgage rates and low unemployment.
|Median Price Y/Y