'Redemption month': New home sales exploded in August

Sales of new single-family homes rose an astounding 18% year-over-year in August, according to US Census Bureau

Sales of new single-family homes increased dramatically in August 2019, rising 7.1 percent month-over-month and an astounding 18 percent year-over-year, according to the latest data released Wednesday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

The median sales price of all new homes sold last month came in at $328,400, with the average sales price reported at $404,200.

At the end of the month, there’s was a 5.5-month supply of inventory at the current sales pace.

John Pataky, executive vice president at TIAA Bank, called is a “redemption month for the housing market.”

“After a long period of up-and-down data and uncertainty as to whether the market was still healthy, all the arrows are now pointing in the right direction,” Pataky said, in a statement. “It is encouraging to see that a wide range of consumers, spanning the existing and new home markets, are feeling confident enough in their finances to make a major purchase like buying a home.”

“If American consumers remain in good spirits, there is no reason this positive momentum can’t continue, so long as prices remain in check and housing supply does not get critically low,” Pataky added.

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