- July new home sales were up 13.9% from June and 36.3% from July 2019, to 901,000 (SAAR), according to the U.S. Census Bureau.
- The median price of new houses sold in July 2020 was $330,600, up 7.2% from a year ago.
- Inventory of new homes available for sale in July fell 1.6% from June and 8.8% year-over-year.
Today’s blockbuster release – the strongest one-month sales figure since 2006 – reinforces the notion that buyer demand is holding strong. Even as much of the economy continues to struggle, the housing market has enjoyed a remarkably strong stretch over the past few months, and new homes have led the charge. Home shoppers continue to make up for time lost to the early days of the pandemic, extending the usual spring shopping season well into the summer. A potent combination of low mortgage rates, a shortage of homes available for sale on the resale market and a likely increase in people’s desire for a new, never lived-in home has supercharged competition for newly constructed homes. However, even as the strong recovery of home sales continues, there are some hindrances looming. Despite the recent increase in home construction from builders bolstered by strong new home sales figures, sales of new homes will likely be constrained by a shortage of available homes at some point as builders race to get ahead of demand. Seasonal factors and uncertainties brought upon by the enduring spread of the coronavirus could also hinder sales volume in the coming months. But for now, the housing market continues to blow past expectations and continue its strong 2020 well into the summer.