Sales of newly constructed, single-family homes declined 7.6% in August, according to the latest report from the National Association of Home Builders (NAHB). On a good note, sales exceeded a 600,000 annual pace for the second month in a row since the Great Recession.
Sales in most areas of the country fell in August, while the West posted an 8% gain. New home sales dropped 34.3% in the Northeast, 12.3% in the South and 2.4% in the Midwest, according to the NAHB.
In August, there were 235,000 new homes for sale at a median price of $284,000 with an estimated a 4.6-month supply at the current sales pace.
Chairman of the NAHB, Ed Brady said, “Given the huge jump in sales in July, the August reading remains robust. Sales are up 21 percent from August last year and year-to-date they are running 13 percent higher, indicating that the housing recovery remains firmly on track.”
“A low supply of homes, a broadening of the market with additional sales growth in lower price points and rising household formation all point to a growing demand for housing as we move into 2017,” said NAHB Chief Economist Robert Dietz.