Housing Figures: Prices, Pending Sales and New Home Sales Rise
August 6, 2020
Housing Figures is our monthly round-up of the top news stories related to residential new construction spending and the latest market numbers.
Median home prices recently reached a record high, while new home sales also posted a nearly 13-year high. Not to be outdone, pending home sales rose in June for the second month in a row. We’re also looking at rising lumber prices and the latest construction spending in this digest.
Median home prices reach a record high. Realtor.com’s latest Housing Recovery Index shows the new median home price is $349,000, an 8.5 percent year-over-year increase. Forty-eight of the 50 largest metros saw increases in median listing prices, while only two metro areas in Florida saw declines. Those areas included Miami-Fort Lauderdale-West Palm Beach and Orlando-Kissimmee-Sanford. [HousingWire]
Pending home sales increase 16.6 percent. According to NAR, pending home sales increased 16.6 percent in June, showing gains for the second month in a row. Contract signings rose 6.3 percent on a year-over-year basis. The only region to not see year-over-year increases in pending transactions was the northeast. [Builder]
NAHB seeks a meeting on lumber prices. NAHB is hoping to meet with Commerce Secretary Wilbur Ross to address supply chain disruptions and tariffs related to lumber imports. NAHB also sent letters to U.S. Trade Representative Robert Lighthizer and Zoltan van Heyningen, the executive director of the U.S. Lumber Coalition. Framing lumber prices have soared 80 percent since mid-April. [NAHB Now]
Private residential construction down 1.5 percent. The latest residential spending numbers indicate residential construction spending was down 1.5 percent in June, representing a seasonally adjusted annual rate of $534.2 billion. Multifamily construction spending rose three percent, however. [LBM Journal]
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New home sales reach almost 13-year high. The sales of new single-family homes reached a nearly 13-year high in June, rising 13.8 percent to a seasonally adjusted annual rate of 776,000 units. That’s the highest level since July 2007. Housing continues to outperform the broader economy. [Reuters]
Builder confidence rebounds in 55+ market. NAHB’s 55+ Housing Market Index jumped 27 points to 65. The low supply of existing homes and low interest rates are believed to be key in helping the 55+ market rebound. The HMI measures both single-family homes and multifamily condominiums. Expected sales surged 36 points to 70 in the latest index. [NAHB Now]