In a joint release the Census Bureau and Department of Housing and Urban Development reported that newly constructed single family homes sold at a seasonally adjusted annual pace of 504 thousand in August, up 18% from July and 33% from August 2013. The supply of new homes available for sale inched up to 203 thousand from 201 thousand in July.
Today’s advance is a positive single for the ongoing housing market recovery. After a disappointing pause in the first half of the year the gain in sales represents a resumption of the momentum that built steadily through 2012 and 2013. The increase in inventory reflects builders’ growing confidence in the recovery but also caution not to get too far ahead of demand.
The increased sales and inventory put the housing recovery on solid footing for additional gains through the end of the year as the market moves steadily back to more normal levels of activity.