DETROIT – Sales of new homes increased in July, up by 1.0 percent to a 708,000 unit annual rate. This is still well below the recent peak 993,000 unit rate from last January. Inventories continued to loosen up, increasing to 6.2 months’ worth. The median sales price of a new home increased to $390,500 in July, up 18.4 percent over the previous 12 months. 

  • Existing Home Sales increased by 2.0 percent in July, to a 5,990,000 unit annual rate.New Home Sales increased by 1.0 percent in July, to a 708,000 unit annual rate. 

  • Existing Home Sales increased by 2.0 percent in July, to a 5,990,000 unit annual rate.New Home Sales increased by 1.0 percent in July, to a 708,000 unit annual rate. 

Existing home sales increased for the second straight month in July, gaining 2.0 percent to hit a 5,990,000 unit annual rate. The sales rate is still range-bound and well below the recent peak 6,730,000 unit rate from last October. Compared to July 2020, sales for this July were up by 1.5 percent. Inventory remains tight but did tick up marginally to 2.6 months’ worth of available homes. The median sales price of an existing home was up by 17.8 percent in July compared with a year earlier, according to the National Association of Realtors.

It is positive news to see both new and existing home sales up in July. However, both series remain rangebound. Housing is not driving this economy, at least not yet. The rise of COVID-D is increasing uncertainty for businesses and households and decreasing confidence for prospective buyers. We expect the increase in inventories to take some heat out of recent very strong price gains this fall.