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

Education | Certified Aging-in-Place Specialist (CAPS)

Apr 24, 2025

Expand Your Business with Aging-in-Place Marketing and Design Tools

Americans are living longer and more active lives resulting in a need to change the way we design homes for long-term family sustainability. Numerous products and services are reinventing themselves for the latest wave of baby boomer retirees, and chief among them is NAHB’s CAPS (Certified Aging-in-Place) construction credential.

Safety

Apr 24, 2025

Fall Protection in Focus During Nationwide Stand-Down

OSHA’s annual National Safety Stand-Down to prevent falls in construction begins Monday, May 5. Use valuable resources from OSHA and NAHB to educate workers on fall risks and help avoid preventable injuries.

View all

Latest Economic News

Economics

Apr 23, 2025

New Home Sales Rise in March

A modest decline in mortgage rates and lean existing inventory helped boost new home sales in March even as builders and consumers contend with uncertain market conditions.

Economics

Apr 22, 2025

The Power of Women in the Workforce

Over the past 125 years, women have played a crucial and multifaceted role in the labor force. Increasing women’s participation in the workforce is not only essential for individual and family well-being, but also contributes significantly to overall labor force participation rates and economic growth by adding more workers and enhancing overall productivity.

Economics

Apr 21, 2025

Who Influences the Purchasing of Building Products?

In a previous post, NAHB analyzed where builders and remodelers purchased products, regardless of who ultimately purchases them (themselves or subcontractors). In this post, the question shifts to who is most often responsible for the choice of particular products.