Recovery Still on Track as New-Home Sales Jump in June
Sales of newly built, single-family homes surged 8.3% to a seasonally adjusted,annual rate of 497,000 units in June, their fastest pace in the last five years, according to data released July 24 by HUD and the U.S. Census Bureau. Gains were seen in three out of the four regions, with the Northeast, South and West posting very solid increases of 18.5%, 10.9% and 13.8%, respectively. The Midwest, which saw an above-trend bump in May, posted an 11.8% decline this time around. Meanwhile, the total inventory of new homes for sale declined to 161,000 units in June, marking a razor-thin, 3.9-month supply at the current sales pace. The months' supply number has not fallen below this level since March of 2004. Commenting on the data, NAHB Chief Economist David Crowe said, "The takeaway from this report is that the housing recovery is solidly on track and isn't going to be derailed by slightly higher mortgage rates. After years of fence-sitting, buyers are back and ready to move forward with an investment in homeownership." Looking ahead, he said he anticipates further, though more incremental, gains in sales through the end of this year. Read NAHB's press release for more, or view the government's official report here.