Boom in July Home Sales - 9/9/16
Recent data indicate that more new homes were sold this July than during any single month in nearly a decade. According to U.S. Census Bureau data, buyers purchased new single family homes at an annual rate of six hundred and fifty four thousand, the highest rate observed since October two thousand and seven. New homes sales are up thirty one percent over the past year.
As reported by the New York Times, residential investment has generated a positive contribution to the nation’s gross domestic product for eight of the last nine quarters. Home price trends also look promising, though one could interpret the data differently.
According to Census data, the median sales price for new homes actually declined in July, to about two hundred and ninety five thousand dollars, down from more than three hundred and ten thousand dollars in June. That suggests that there are more new homes being supplied to the market at the lower end of the housing market, precisely the types of homes that many young adults can afford.
Residential investment presently stands at three point eight percent of gross domestic product. That’s less than the four point six percent average since nineteen forty seven, implying that there is further room for gains.