New Single-Family Home Sales Surge In July

Sales of new single-family homes witnessed a remarkable rise in July 2023, as reported by joint estimates from the U.S. Census Bureau and the Department of Housing and Urban Development. The seasonally adjusted annual rate stood at 714,000 — a notable 4.4% increase from the revised rate of 684,000 in June. Even more striking is the year-over-year growth, with the latest figures showcasing a massive 31.5% jump compared to the July 2022 estimate of 543,000.

When it comes to sales prices, buyers in July 2023 faced median costs of $436,700 for new homes. However, those willing to invest a bit more shelled out an average price of $513,000.

On the inventory front, the seasonally adjusted estimate highlighted that 437,000 new houses were up for grabs by the end of July. Given the current sales pace, this inventory suggests a supply that could last approximately 7.3 months.

The upward trajectory in sales, accompanied by a substantial inventory, offers a mix of optimism and caution for potential homebuyers and industry stakeholders alike.

Just yesterday, pending home sales dipped 2.2% over the month, marking a significant year-on-year decrease of 16.6%, according to the National Association of Realtors. At the end of July, existing housing inventory stood at 1.11 million units, a 3.7% increase from June. However, this figure is still 14.6% lower than the same time last year. The current unsold inventory can sustain for 3.3 months at the prevailing sales speed, with a slight increase from June to July 2022.