The U.S. Census Bureau reports that New Home Sales soared by 14% in July from June to an annual rate of 901,000 versus the 787,000 expected. Sales were up a whopping 36% annually. The median home price rose to $330,600 while the average sales price increased to $391,300. Monthly gains were seen in the Midwest, South and West with declines in the Northeast. Inventories continue to run low with a 3.9 month of supply, below 6 months that is seen as normal. A solid report that shows that the housing sector continues to be a beacon of light in the U.S. economy.
Home prices saw solid gains in June, as evidenced by the S&P Case-Shiller 20-City Home Price Index report. The 20-City Index saw a 3.5% gain year over year and was unchanged monthly from June to July. The National Index rose by 4.3% and was up 0.6% monthly. Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices said, "More data will be required to understand whether the market resumes its previous path of accelerating prices, continues to decelerate or remains stable. That said, it’s important to bear in mind that deceleration is quite different from an environment in which prices actually fall."
Consumer Confidence slipped to 84.8 in August from 91.7 in July as optimism surrounding business and employment conditions declined during the month. In addition, the present situation index declined sharply and consumers were also pessimistic about the short-term outlook. Lynn Franco, Senior Director of Economic Indicators at The Conference Board said, "Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.”
New Home Sales surge in July. Home price gains solid. Consumer Confidence slips in August.
Comments(2)