New Home Sales Jump To 740K In August. Highest Level In 4 Months

Following a large upward revision to 729K in July, new home sales in the United States increased 1.5 percent to a seasonally adjusted annual pace of 740K in August 2021, exceeding market expectations of 714K.

It is the highest reading in four months, with sales increasing the most in the Northeast (26.1%), South (6%), and West (1.4%), while declining in the Midwest (-31.1 percent ).

From $325,500 a year ago, the median sales price jumped to $390,900.

There were 378K new homes for sale on the market in August, up from 366K in July.

Despite this, new home sales in August 2020 were significantly below 977K, as high prices due to rising material costs continue to put a strain on buyers’ budgets.

A full construction employment, and home construction report to follow

The four-week moving average of initial claims, which smooths out week-to-week volatility, was 335,750 in the week ended September 18th 2021, down 750 from the previous week’s revised average.