Sales of new single-family houses throughout the United States increased by 10.6 percent in July, according to the latest report by the U.S. Census Bureau and the Department of Housing and Urban Development.
These newly constructed homes were at a seasonally adjusted annual rate of 739,000, exceeding the July 2023 estimate of 700,000. The seasonally adjusted estimate of new houses for sale at the end of July was 462,000, representing a supply of 7.5 months.
The report indicates that the median price of new houses sold nationwide in July 2024 was $429,800, while the average stood at $514,800.
“Despite the monthly bump in new home sales data, higher rates continue to sideline buyers as housing affordability challenges remain,” said Carl Harris, chair of the National Association of Home Builders (NAHB). “The only sustainable way to ease high housing costs is to implement policies that allow builders to construct more attainable, affordable housing.”
However, the NAHB is forecasting gradual improvements for the home-building sector as the Federal Reserve has indicated interest rates may be cut in September. Regionally, on a year-to-date basis, new home sales are up by 22.1 percent in the Midwest, by 5.4 percent in the Northeast, and by 6.1 percent in the West. New home sales are down by 2.4 percent in the South.
The NAHB also reports that 64 percent of homebuilders are using incentives to entice potential buyers to make a purchase. This is the highest level since April 2019.
Michael Shabot, an associate broker with Keller Williams New York City, has witnessed the surge of recent new construction in Manhattan.
“Sales of newer condos are outperforming those of the older, prewar buildings,” he told The Epoch Times. “Developers want to hold their prices, but tend to offer incentives like free monthly common charges for the first year, free storage lockers, or other perks to buyers.”
Shabot said he has had the best August in many years.
“Across the board, luxury and mainstream residential real estate has been very active in terms of signed contracts,” he said. “Usually in the summer there’s a decline, but I think because interest rates have come down a bit, people are ready to buy now.”
Manhattan’s luxury market comprises any residential property priced above $4 million. Property Shark, a nationwide provider of real estate data, reported that the July median home-sale price in Manhattan was $1.2 million.
Shabot’s clients have included empty nesters, those seeking second homes in the city, international buyers, and parents purchasing condos or co-ops for their children due to the explosive rental costs.
“The stock market has done extremely well, and there’s the old saying, ‘As goes on Wall Street, so goes on Main Street,’” Shabot said.
Most of his younger clients prefer to live below 23rd Street in areas such as Greenwich Village or SoHo, while singles over 35 or families typically gravitate toward the upper East Side or West Side.
“I think what’s happening here is a good omen for what’s going to happen this fall,” he said.
Sindy Ready, the 2024 president-elect of the Arizona Association of Realtors, has also noticed an uptick in home sales, particularly new construction.
An agent with RE/MAX Excalibur in the Phoenix/Scottsdale area, Ready noted that the “Valley of the Sun,” encompassing Maricopa County, has seen consistent sales hikes since the beginning of 2024.
“This is a unique area, and we’ve experienced about 4–6 percent increases due to the fact that we’ve had a lot of tech industries moving in,” she told The Epoch Times.
While inventory levels are much lower than in a normal market—when some 35,000 homes were available—the Valley currently offers close to 21,000 homes for sale. Her clients are a mix of local, national, and international buyers.
“Some are coming here for jobs, while others are retiring, downsizing, or looking for vacation homes,” she said.
Scottsdale and Paradise Valley command the most money, with just 12 homes under $550,000 currently available in Scottsdale. Mesa and Gilbert are also popular areas, with Mesa offering 882 homes for sale—about half of which are under $550,000. Gilbert’s current housing inventory comprises 579 homes, with only 154 listed under $550,000. Of the homes in the region, Phoenix offers the largest number of homes under $550,000 with about 1,500 currently on the market.
Ready noted that Californians are still spilling over the state border in search of more affordable options in Arizona.
“One of my clients was a young couple who are renting in California, but can’t afford to buy there,” she said. “They recently bought a home here in Arizona, and are renting it out full time. With this income, maybe they’ll eventually buy in California or decide to make their home here.”
Meanwhile, sales of existing homes throughout the nation increased by 1.3 percent in July, halting a four-month stretch of declines. The latest report from the National Association of Realtors (NAR) also indicates that three of four major U.S. regions reported sales hikes. While the Midwest remained steady, year-over-year sales grew in the Northeast and West.
Existing-home sales throughout the Northeast in July climbed by 4.3 percent from June, to an annual rate of 490,000, an increase of 2.1 percent from July 2023. The median price in the Northeast was $505,100, a jump of 8.3 percent from last year. In the West, existing-home sales rose by 1.4 percent in July, to an annual rate of 750,000, up by 1.4 percent from a year ago. The median price in the West was $629,500, up by 3.4 percent from July 2023.
Other regions also fared well in July. Existing-home sales in the South increased by 1.1 percent from June to an annual rate of 1.79 million in July, down by 3.8 percent from the previous year. The median price in the South was $372,500, up by 2.3 percent from one year earlier.
Only the Midwest saw existing-home sales unchanged in July. The annual rate of 920,000 was down by 5.2 percent from the previous year. The median price in the Midwest was $321,300, up by 4.5 percent from July 2023.
The NAR data included completed transactions for single-family homes, townhomes, condos, and co-ops.
“Despite the modest gain, home sales are still sluggish,” NAR chief economist Lawrence Yun said. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
As of Aug. 26, Bankrate reports the average interest rate for a 30-year fixed mortgage at 6.51 percent, 5 percentage points below last week’s average.
July’s median existing-home price for all housing types was $422,600, up by 4.2 percent from $405,600 one year ago. All four U.S. regions posted price increases. The NAR indicates that the median existing single-family home price was $428,500 in July, up by 4.2 percent from July 2023. The median existing condo price was $367,500 in July, up by 2.7 percent from last year.
“The median home price of condominiums is cheaper, yet the condominium market is underperforming compared to the single-family market,” Yun said. “Rising maintenance and insurance costs have lessened the appeal for condominiums.”
At the end of July, America’s total housing inventory was 1.33 million units, an advance of 0.8 percent from June and 19.8 percent from July 2023 at 1.11 million. The NAR also indicated that unsold inventory is currently at a four-month supply, which is down from 4.1 months in June but up from 3.3 months last July.
First-time buyers, who are often hit the hardest with escalating home prices and mortgage rates, comprised 29 percent of July’s buyers. While mirroring June’s percentage, first-timer buyers were down by 30 percent from July 2023. Cash sales represented 27 percent of July 2024 transactions, down from 28 percent in June but up from 26 percent last July. Individual investors or second-home buyers were responsible for 13 percent of those cash purchases.
