The US Census Bureau and Department of Housing and Urban Development in a joint release reported that newly constructed single family homes sold at a seasonally adjusted annual pace of 592 thousand in June and revised May sales up to 572 thousand. This pace represents steady progress from housing bust lows below 300 thousand but is still well short of the pre-boom level of sales, averaging an annual pace of 964 thousand from 2000 to 2003. The inventory of new homes for sale increased to 244 thousand, up from 216 thousand one year earlier.
Ongoing gains in the labor market and a favorable interest rate environment should continue to stoke demand for new homes, but NAHB members continue to report challenges meeting the expanding demand because of shortages of developed lots and skilled labor (NAHB).
The tug of war between supply and demand for new homes will continue as the housing market recovery continues on all dimensions, and progress is being made.