New Home Sales at Highest Pace Since Sept. 2006

Economics
Published

In another indicator that housing continues to lead the economy forward, sales of newly built, single-family homes in August topped the 1 million mark and reached their highest pace since September 2006. Sales increased 4.8% to a seasonally adjusted annual rate of 1.01 million units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The August rate is 43.2% higher than the August 2019 pace.

"Surging sales are consistent with record builder confidence levels stemming from higher buyer traffic, historically low interest rates and a shift in demand for lower density markets," said NAHB Chairman Chuck Fowke. "However, higher lumber costs and limited building material availability in some markets signify we could see higher prices down the road."

"New home sales are now 15 percent higher on a year-to-date basis, with gains in all regions," said NAHB Chief Economist Robert Dietz. "But with inventory at just a 3.3 months' supply, more construction is needed. The challenge will be whether materials and labor are available."

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the August reading of 1.01 million units is the number of homes that would sell if this pace continued for the next 12 months.

Inventory fell to a 3.3 months' supply, with 282,000 new single-family homes for sale, 40% lower than August 2019. The current months' supply is the lowest in the history of the data series, which goes back to 1963. Of the inventory total, just 54,000 are completed, ready to occupy. The median sales price was $312,800. The median price of a new home sale a year earlier was $327,000.

Regionally, on a year-to-date basis new home sales were up in all four regions: 23.6% in the Northeast, 23.6% in the Midwest, 13.9% in the South, and 12.4% in the West.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Environmental Issues

May 30, 2025

NAHB Members Provide Final Recommendations for New WOTUS Rule

NAHB members concluded their participation in multiple “waters of the United States” (WOTUS) listening sessions with strong showings in Washington, D.C., and Salt Lake City. In total, 12 NAHB members and four staff members from NAHB and state home builder associations (HBAs), representing 11 states, provided oral statements at listening sessions.

Workforce Development

May 30, 2025

Statement from NAHB Chairman Buddy Hughes on DOL Decision to Pause Job Corps Center Operations

NAHB Chairman Buddy Hughes issued the following statement after the Department of Labor announced it was pausing Job Corps center operations nationwide.

View all

Latest Economic News

Economics

May 30, 2025

Multifamily Absorption Moves Lower for New Apartments

The percentage of new apartment units that were absorbed within three months after completion continued to trend lower, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).

Economics

May 29, 2025

Treasury Yield Increase Drives Mortgage Rates Higher in May

Mortgage rates continued their upward trend in May due to market volatility triggered by fiscal concerns and weaker U.S. Treasury demand. According to Freddie Mac, the average 30-year fixed-rate mortgage rose to 6.82% — a 9-basis-point (bps) increase from April. The 15-year fixed-rate mortgage increased by 5 bps to 5.95%.

Economics

May 28, 2025

Aging-in-Place Remodeling Work Fell While Familiarity and Receptiveness Remain High

Only 56% of professional remodelers undertake projects designed to allow homeowners to Age-in-Place (AIP), according to results from NAHB’s Q1 2025 Remodeling Market Index (RMI) survey.