Commerce Department Report: New Home Sales Rise 2.4 Percent in JulyMortgagePress.comsingle family homes, NAHB, Commerce Department, housing stimulus package
Sales of newly built single-family homes rose 2.4 percent to a
seasonally adjusted annual rate of 515,000 units in July, the
Commerce Department reported today. The report also indicated
continuing contraction in the number of new-homes for sale as
builders keep a tight rein on inventories to help restore better
balance between market supply and demand.
"With 15 consecutive months of reductions in the number of new
homes for sale, builders are clearly doing a good job of chipping
away at their inventories," noted Sandy Dunn, president of the
National Association of Home Builders (NAHB) and a home builder
from Point Pleasant, W.Va. "Now that the government has also done
its part by passing a much-needed housing stimulus package, we are
looking forward to positive effects on new-home sales in the near
future."
"While the improvement in new-home sales in July is definitely a
favorable development, it comes on the heels of two consecutive
months of significant downward revisions to sales numbers for May
and June, so we have to keep the latest report in perspective,"
said NAHB Chief Economist David Seiders. "Nevertheless, we are
cautiously optimistic that home sales are approaching a bottom, and
that the newly enacted first-time home buyer tax credit (which went
into effect as part of the housing stimulus bill on July 30) will
help stimulate sales and provide crucial support for a market
turnaround."
Commerce's report indicated that the inventory of new homes for
sale declined for a fifteenth consecutive month in July to 416,000
units, the lowest number since April of 2007. This reflects a 10.1
months' supply at the current sales pace, down from 10.7 in
June.
On a regional basis, where estimates are subject to large
month-to-month variations, sales activity was mixed in July. The
Northeast posted a nearly 39 percent gain, the West posted a 9.9
percent gain, the Midwest posted an 8.2 percent decline and the
South posted a 2.5 percent decline. Every region registered
declines in the number of new homes for sale in July.
