New Home sales up 9.6% in July
New-home sales rose just about 10% in July, according to a central authority report Wed. that reinforced indications of an improving home market. Sales of new houses climbed to a seasonally altered yearly rate of 433,000, the highest pace since last Sep , the govt. recounted.
That was a 9.6% increase over the revised rate for June better than industry researchers had anticipated, but still 13.4% below the July 2008 rate. The sales rate has risen 31.6% from this year’s lowest rate, which was set in January. The seasonally changed estimate of new homes for sale at the end of July was 271,000, according to the govt. . That represents a supply of 7.5 months at this sales rate, the lowest figure since April 2007 and well below Jan’s supply of 12 months.
Inventory is down ; sales are up,” says Patrick Newport, with IHS World Understanding . The question , Newport claims, is what proportion of a lift sales are getting from a Fed tax subsidy of nearly $8,000 for first-time house purchasers. The governing body’s report on new home sales follows Tues.’s SP / Case-Shiller Index report showing improving home costs in June compared to May in 18 of twenty towns tracked. According to the governing body, the typical sales cost of new homes sold in July was $210,100. “I’m optimistic,” announces Tim Dwyer, Chairman of Entitle Direct Group, a title insurer in Stamford, Conn. In the Northeast, July’s sales rate rose 32.4% compared to June, the strongest gain of any area.
The South was up 16.2% ; the West was up 1% ; and the Midwest’s sales rate dropped 7.6%. Joel Naroff, of Naroff Commercial aides, announced the increase in existing home sales is a real sign the home market is now back successfully running. That is in part because builders are being more wary about chasing developments till they’re certain they can sell their properties, he announced. “We can stop sweating about the housing market and start playing closer attention to other issues , for example when credit will start flowing more freely,” Naroff claimed in a press release.