New home sales increase in July
Posted on Wednesday, August 26, 2015 at 10:47:37 PM
New-home sales in the U.S. surged through July, especially in the Northeast, as multiple indicators begin to show that the long-awaited housing recovery is finally here.
Purchases of new homes dropped a bit in June, but in July consumers returned to the housing market as new-home sales increased 5.4 percent to a seasonally adjusted annual rate of 507,000. Low mortgage rates and robust job growth have fueled recent sales increases, according to the Associated Press. In fact, through the first half of the year, new-home sales escalated 21.2 percent.
Sales in the Northeast increased 23.1 percent in July, while the South and West saw more slight gains and sales dropped in the Midwest, according to the news outlet.
It's not only new-home sales that are surging, though. Home resales climbed to an eight-and-a-half year high in July, while home starts rose to their highest levels since October 2007, CNBC reported.
The housing market is also defined by an inventory shortage these days, which is driving prices up slightly. The median home price, at $285,900, is 2 percent higher than it was one year ago. Despite this, prospective homebuyers are still seeking out residential financing and purchasing homes as the economic recovery gives them new confidence.