“And with jobs still being created at a decent pace, and mortgage credit conditions loosening, more households will have the opportunity to buy a home”.
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Still, the figure is a far cry from the historic average: the average monthly number of new home sales over the last 30 years is 706,000 according to Peter Boockvar, chief market strategist at the Lindsey Group.
Sales of newly built homes rose in August, a sign the housing market’s modest recovery is extending into the second half of the year.
Meanwhile, sales for July were revised upward to show an annualised pace of 522,000 from 507,000. Sales of new homes totaled 414,000 during 2014.
Sales have settled somewhat since, though are well above-year earlier levels. But most economists were still encouraged by the gains.
The economy will benefit by strong gains in new-home sales because new constructions could quicken the economic pace by producing construction jobs, higher spending on landscaping and related services and an increased demand for building materials. After the Fed’s meeting last week, Yellen had said “We are envisioning further improvement in the housing market, it remains very depressed”.
Still, low mortgage rates are keeping home purchases affordable for many would-be buyers.
The median sales price of new houses sold in August was $292,700.
Still, for the time being, potential home buyers are finding fewer than normal choices. Meanwhile, sales declined 9.1 percent in the Midwest.
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The limited supply of new homes is also pushing up prices. That’s below the six months that is more common historically.
