New Home Sales in June Highest in 8+ Years

The real estate market across the country continues to sizzle along with the outdoor temperatures! In June, new homes sales rose to a seasonally adjusted annual rate of 592,000, representing an increase of 3.5% compared to May. The numbers include only single-family homes and were reported in data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The month-to-month increase is especially impressive considering May's numbers were revised upward as well.

In addition to the rise from May to June, new home sales were also found to have risen over 9% from the first quarter of 2016 to the second.

The National Association of Home Builders' chief economist, Robert Dietz, says that these rates of sales are the highest since February of 2008, over 8 years ago. He believes that the U.S. housing market continues to gain momentum, stating that "The market should continue to firm throughout the year, propelled by low mortgage interest rates and solid growth in employment."

These impressive sales numbers came despite the ongoing lack of inventory, which stood at a 4.9-month supply in June, and elevated home prices. The median new home sold for $306,700 last month.

National sales were buoyed up by sharp increases of over 10% in both the West and Midwest regions, while sales in the South were nearly flat and the Northwest experienced a decline of 5.6%.

Source: New Home Sales Reach Highest Level Since February 2008