The National Association of Home Builders (NAHB) released its latest report today, showing sales of newly built, single-family homes was up 3.5% in June. New home sales rose 9.3% in the second quarter of 2016 from the first quarter.
New home inventory for sale was at 244,000 units in June, which is a 4.9-month supply at the current sales pace. The median sales price of new houses sold was $306,700.
New home sales were up by 10.9% in the West and 10.4 percent in the Midwest. Sales fell by 0.3% in the South and 5.6% in the Northeast.
NAHB Chairman, Ed Brady, a home builder and developer from Bloomington, Ill. had said, “This positive report is in line with our forecast for a gradual recovery of the housing market. For builders to meet the increasing demand for housing, we need to address supply-side headwinds such as shortages of lots and labor.”
“The fact that new home sales reached their highest pace in over eight years shows the housing market is gaining momentum,” said NAHB Chief Economist, Robert Dietz. “The market should continue to firm throughout the year, propelled by low mortgage interest rates and solid growth in employment.”
The NAHB report is based on newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.