New Home Sales Jump in June
New home sales are at a new high this year after outperforming expectations in June. The U.S. Census Bureau and Department of Housing and Urban Development announced Friday that new single-family sales increased 13.8% from May to a seasonally adjusted annual rate of 776,000 in June. This is also 6.9% above the June 2019 data, making it the best month of June since 2007. Economists predicted sales would increase 4% in June, according to Reuters.
Sales across the country were up as well. The Northeast, West and Midwest each saw double-digit increases while the South improved 7.2% in June. The South was the lone region to post a decline year over year, and the Northeast was ahead of June 2019 by more than 110%.
The average sales price of new home sold in June was just shy of $385,000, and the median price was just under $330,000.
"The broad based strength in new home sales reflects a shift in consumer attitudes toward homeownership," states Wells Fargo Securities. "With people spending more time at home during the pandemic, many households are looking for more space to accommodate remote workspaces and the presence of more people in the home for more of the day."
-Michael Miller, managing editor