By Kerry Smith
In a seasonally adjusted month-to-month comparison, July sales were 4.4% higher than June sales. Year-to-year sales were up 31.5%.
WASHINGTON – New-home sales hit a 17-month high in July as construction continues to hold an outsized percentage of the home-sale market. The industry has been slowly ramping up even as the existing-home market pulls back because homeowners with ultra-low mortgage rates are opting to stay in place rather than move.
In a seasonally adjusted month-to-month comparison, July sales were 4.4% higher than June sales. Year-to-year sales were up 31.5%, according to a joint report from the U.S. Department of Housing and Urban Development and the Census Bureau.
A new home’s median price was $436,700 in July, according to the report, down 8.6% from $478,200 one year earlier as more builders focus on a lower end of the new-home market.
“With the median price of a new home running close to that of an existing home, many homebuyers are opting for the benefits of fresh floor plans, better energy efficiency and a warranty,” George Ratiu, chief economist at Keeping Current Matters said to CNN. “Builders are bringing a growing number of new single-family homes to market, focused on meeting the needs of an affordability-constrained consumer.”