New residential home sales continue to rise nationwide as the market recovers from the COVID-19 pandemic.
According to the The U.S. Census Bureau and the U.S. Department of Housing and Urban Development’s monthly report, sales of new single-family homes were at a seasonally adjusted rate of 901,000. It’s a 13.9% increase from June and 36.3% higher than July 2019.
In the Midwest, sales were up a staggering 81.4% from July 2019, along with a 58.8% increase from June.
“Demand for new homes remains strong as household formation continues to grow, and purchasing power is buoyed by historically low mortgage rates. The lack of existing homes for sale nationwide to meet this demand provides fertile ground for new construction to accelerate,” said First American Deputy Chief Economist Odeta Kushi.
Inventory rates for new single-family homes for sale fell to 299,000, which is 8.8% lower than July 2019, and the current month’s supply is the lowest since 2013, according to the National Association of Home Builders. With low inventory, the median sales price increased to $330,600, up 7.2% from $308,300 in July of 2019.
“Consumers are being driven by low interest rates, a growing focus on the importance of housing and a shift in buyers seeking homes in lower density areas,” said Chuck Fowke, chairman of the National Association of Home Builders.