Sales of new homes dropped 12.8% in July, but June sales were revised  up sharply – from the initial report of a 7.0% increase to a 20.9% boost. June’s annual pace of 728,000 units is the strongest rate since July 2007. July’s 635,00-unit rate puts year-to-date new home sales 4.1% ahead of last year’s sales through the first seven months.1

Year-t0-date compared to last year, new home sales in the Northeast and Midwest are down 15.4% and 12.4%, respectively, while sales in the South and West are up, 7.2% and 9.5%, respectively. In 2019, the South is accounting for 58% of the nation’s new home sales.1

The median price of new homes sold in July was $312,800, 4.5% below the median price in July 2018. On a year-ago basis, the median price has fallen in eight of the past nine months.1

The yield on the 10-year Treasury closed at 1.47% on Wednesday, September 4, its lowest closing yield in over three years. In November 2018, the yield averaged 3.12% – meaning that the rate has been halved in the past nine months. The yield averaged 1.63% in August.2

Prices on homes purchased using agency financing continued their deceleration, posting a 5.0% gain in the year ending in the second quarter of 2019. Early in 2018, the corresponding rate of increase was 7.3%. The FHFA Home Price Index now stands 21.1% above its prerecession peak in 2007.3

Read More Wells Fargo Keeping Current 9.6.2019

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