Single-family Home Sales Up 7.9 Percent in August
September 27, 2013
According to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes rose 7.9 percent to a seasonally adjusted annual rate of 421,000 units in August, partially offsetting a dip in sales activity in July as consumers reacted to higher interest rates, according to the National Association of Home Builders.
Three out of four regions posted solid gains in new-home sales activity in August. Sales rose 8.8 percent in the Northeast, 19.6 percent in the Midwest and 15.3 percent in the South for the month. The West was the exception to the rule, with a 14.6 percent decline, NAHB reports.
"Consumers are adjusting to the reality of today's higher rates following a period of record-setting lows, and today's sales report provides evidence of that," says Rick Judson, NAHB chairman, in the release. "We expect to see more buyers coming back to the market as the psychological effects of the rate gains continue to wear off, particularly since, even after the recent spike, mortgage rates remain exceptionally favorable on a historic basis."