New home sales in the United States increased in August, reaching a four-month high.
According to the Commerce Department, new home sales in the United States increased more than expected in August, rising 1.5 percent to a seasonally adjusted annual pace of 740,000.
According to official figures released on Friday, new house sales hit a four-month high. The prior month’s corrected total of 729,000 was reported in July.
New home sales in the United States increased in August, but remained below pre-COVID levels https://t.co/MPxYMNLVGE
UPDATE: August saw a jump in new house sales for the second month in a row https://t.co/tVKIaX9H8s
The demand for homes remains strong, but builders are struggling to keep up due to supply chain issues and labor constraints.
“The land and construction supply chains are considerably stretched, and this will persist throughout the fourth quarter and beyond,” said Stuart Miller, executive chairman of Lennar Corp.
“With expanded output, the sector will not be able to immediately address the supply gap. As a result, we expect the market to remain in its current equilibrium, or should I say imbalance, for a long time,” Miller said.
The median sales price for a new home is a record $390,900, according to the Census Bureau and the Department of Housing and Urban Development. In August, over 22% of the properties sold were for more than $500,000, while 9% were for more than $750,000.
At the end of August, 378,000 residences were sold, the highest number since October 2008. At the current rate, the stock of new homes will be depleted in about six months.