Sales of new U.S. single-family homes rose more than expected in August, but there are indicators that the housing market pattern is slowing from the tailwind from the COVID-19.
Source: U.S. Department of Commerce
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New home sales rose by 1.5% to a seasonally adjusted annual rate of 740,000 units last month. July’s sales pace was revised up to 729,000 units from previously reported 708,000 units.
Prices for new homes remained the same after the price for July was revised. The Commerce Department reported the median sales price in July as $390,500 but revised that upward in today’s report to $390,900.
The cost of constructing houses has increased as builders suffer shortages of construction materials, and prices for materials have increased during the COVID-19 pandemic. Builders also faced labor shortages, causing delays in completing projects.
Sales of new homes rose in August from July in three of the four regions nationwide, including 26.1% in the Northeast, dropped 31.1% in the Midwest.
Compared with a year earlier, sales have dropped significantly in each region: down 46.9% in the Midwest, 37% in the Northeast, 23% in the South, and 16.3% in the West.
