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Home Buyers Turn to Builders as Inventory Remains Limited

by Administrator Forexezy
August 23, 2023
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Rise in New Home Sales Continues in July

The demand for newly built homes in the U.S. continues to grow as home buyers face a lack of available previously-owned homes. This has resulted in more buyers turning to home builders who have rallied to meet the increased demand.

According to the Commerce Department’s report on Wednesday, new home sales in the U.S. rose by 4.4% in July, reaching an annual rate of 714,000. This number is adjusted for seasonal variations and represents the projected number of homes that would be built over a twelve-month period based on the current pace.

July’s sales pace marks the highest level since February 2022, surpassing expectations among economists on Wall Street who had predicted sales to total 703,000 for the month. Notably, the Midwest experienced a notable surge in new home sales, leading the overall increase.

In the past few months, new home sales have been steadily trending upwards as home builders are one of the few sources of available inventory for buyers. The data from June also saw a revision, with new home sales falling to 684,000 compared to the previously estimated 697,000.

It’s important to note that new home sales data are subject to volatility and often undergo significant revisions month-on-month.

As the demand for housing continues to rise and inventory remains limited, home buyers are relying on builders to provide them with much-needed options in the market. With sales reaching new heights and builders scaling up their efforts to meet this demand, the housing market shows promising signs of growth.

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