Pace of New Home Sales Tops 1 Million for First Time in 14 Years


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The housing market continued to boom in August, as low mortgage rates and pandemic-driven demand pushed new home sales above 1 million for the first time in 14 years.

Sales of new single-family homes rose 4.8% in August from July to a seasonally adjusted annual rate of 1.01 million, the Commerce Department said Thursday. Economists polled by the Wall Street Journal had expected a 0.3% decline to 898,000. August sales were 43% above the year-earlier level.

The new-homes data are volatile and August’s figures came with a margin of error of 10.5 percentage points. July sales were revised up to 965,000 from 901,000 initially.

Based on the current rate of sales, there is a 3.3-month supply of new homes, down from 4 months in July, 4.6 months in June and 5.4 months in May.

“Strong sales have depleted inventories of new homes for sales, which

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The numbers: Sales of new single-family homes in August exceeded an annual rate of 1 million for the first time since 2006, as buyers were forced into the market for newly-constructed properties thanks to the dearth of home listings.

New home sales occurred at a seasonally-adjusted, annual rate of 1.011 million, the Census Bureau reported Thursday. That represents a 4.8% increase from an upwardly-revised pace of 965,000 homes in July. Compared with last year, new home sales are up 43%.

Economists polled by MarketWatch had expected home sales to drop to median pace of 900,000.

What happened: Not all parts of the country saw an uptick in sales despite the historically high rate nationally. New home sales fell 21.4% in the Midwest and 1.7%. Comparatively, the South saw the biggest increase in sales with a 13.4%, which sales volumes rose by 5% in the Northeast.

The median sales price in

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The National Association of Realtors (NAR) issued a release Tuesday in which the association says that existing-home sales continued to climb in August, marking three consecutive months of positive sales gains.

The northeast part of the nation saw the greatest improvement from the prior month.

Total existing-home sales rose to a seasonally-adjusted annual rate of six million in August. Sales as a whole rose year-over-year, up 10.5 percent from a year ago, which totaled 5.43 million in August 2019.

The median existing-home price for all housing types in August was $310,600, up 11.4 percent from August 2019 ($278,800), as prices rose in every region. August’s national price increase marks 102 straight months of year-over-year gains.

Total housing inventory at the end of August totaled 1.49 million units, down 0.7 percent from July and down 18.6 percent from one year ago, from 1.83 million. Unsold inventory sits at a 3.0-month supply

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Existing-Home Sales Hit Highest Level Since December 2006

Existing-home sales continued to climb in August, marking three consecutive months of positive sales gains, according to the National Association of Realtors. Total inventory saw a drop from July to August driven by lumber shortages caused by the California wildfires.

 

Each of the four major regions experienced both month-over-month and year-over-year growth, with the Northeast seeing the greatest improvement from the prior month. Year-over-year prices also saw a dramatic increase.

 

Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 2.4% from July to a seasonally-adjusted annual rate of 6.00 million in August. Sales as a whole rose year-over-year, up 10.5% from a year ago (5.43 million in August 2019).

 

“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market,” said Lawrence Yun, the Realtors’ chief economist. “Further gains in sales are likely for the remainder of

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U.S. existing home sales approach 14-year high; prices scale record peak

WASHINGTON (Reuters) – U.S. home sales surged to their highest level in nearly 14 years in August as the housing market continued to outperform the overall economy, but record high home prices could squeeze first-time buyers out of the market.

FILE PHOTO: A ‘for sale’ is seen outside a single family house in Garden City, New York, U.S. on May 23, 2016. REUTERS/Shannon Stapleton/File Photo

The report from the National Association of Realtors confirmed home sales had recovered after slumping when the economy almost ground to a halt as businesses were shuttered in mid-March in an effort to slow the spread of COVID-19.

Demand for housing is being fueled by record-low mortgage rates and a pandemic-fueled migration to suburbs and low-density areas in search of more spacious accommodation as many people work from home. Federal Reserve Chair Jerome Powell told a congressional panel on Tuesday that the economy has shown

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Home sales reach a 14-year high in August, with prices hitting a new record

Home sales surged to a 14-year high in August as record low interest rates brought homebuyers out in droves and pushed prices to a new record high.



a view of a house: Homes in the Southern Highlands master-planned community are seen in this aerial photograph taken over Las Vegas, Nevada, U.S., on Thursday, Sept. 17, 2020. Nowhere is the widening gap between real estate and the real economy more apparent than in Las Vegas, where tourism is in ruins, wages are plunging and home prices just keep rocketing higher. Photographer: Roger Kisby/Bloomberg via Getty Images


© Roger Kisby/Bloomberg/Getty Images
Homes in the Southern Highlands master-planned community are seen in this aerial photograph taken over Las Vegas, Nevada, U.S., on Thursday, Sept. 17, 2020. Nowhere is the widening gap between real estate and the real economy more apparent than in Las Vegas, where tourism is in ruins, wages are plunging and home prices just keep rocketing higher. Photographer: Roger Kisby/Bloomberg via Getty Images

Existing home sales — which includes sales of single-family homes, townhomes, condominiums and co-ops — were up 2.4% in August from July, to a seasonally-adjusted annual rate of 6 million transactions, according to the National Association of Realtors. That was a 10.5% increase from the year before and the highest level since December 2006.

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