🏡 US New Home Sales Hit The Highest Mark of the Year

According to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family houses saw a significant monthly growth of 10.6% in July. The New Residential Sales report on the volume of new single-family home sales as well as other metrics such as new home prices and supply, illustrating the sentiment of homebuyers and builders.

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There was a seasonally adjusted annual rate of 739,000 sales for July 2024. This was above most estimates and is the highest level of new home sales recorded in over a year. Additionally, new home sales rose by 11.3% from January to July 2024, compared to 9.5% within the same period in 2023. These statistics indicate steady year-over-year improvement and strong current momentum in the housing market.

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The median sales price of new houses sold in July 2024 was $429,800, a 3.1% increase from June. New home prices remain lower today than during the low-interest rate environment during 2022, but many expect new home prices to continue to rise. New home prices could continue to increase due to a 9.8% month-over-month drop (from June to July 2024) in home construction, which could further tighten the supply of new homes.

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 The current limited availability of homes for purchase is further supported by the overall decline in new single-family homes, down to 462,000. This represents a supply of 7.5 months at the current sales rate. While this level of supply is above previous supply levels, the overall total home inventory, including both new and existing homes, remains lower at around 4.5 months. This lean level of resale inventory contributes to the ongoing shortage of available homes in the market.

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Plotify’s Takeaways

• Sales of new single-family houses rose by 10.6% in July 2024, and are up 5.6% from the previous year
• The median sales price of new houses sold in July 2024 increased by 3.1% from the previous month, reflecting less new housing supply and continued demand
• The inventory of new single-family homes fell by 1.1% in July, translating to a 7.5 month supply at the current sales rate, while the overall total home inventory is lower at 4.5 months 

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