As featured in the recent issues of DesignandBuildwithMetal.com, the National Association of Home Builders (NAHB) reports that sales of newly built, single-family homes rose to their highest level since the Great Recession, up 13.8 percent to a seasonally adjusted annual rate of 776,000 units in June, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The June rate is 6.9 percent higher than the June 2019 pace. Chuck Fowke, chairman of the NAHB, says these numbers could be “a sign that the housing market is leading the economy during the coronavirus outbreak.”
“Along with rising builder sentiment, we are seeing increasing consumer demand in the suburbs, exurbs and rural areas,” said NAHB Chief Economist Robert Dietz. “At the same time, builders are dealing with supply-side concerns such as rising material costs, particularly lumber, which surpassed its 2018 price peak this week. Nonetheless, low inventory levels point to construction gains ahead.”
A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the June reading of 776,000 units is the number of homes that would sell if this pace continued for the next 12 months.
More on the NAHB: The National Association Of Home Builders (NAHB) is a trade association that helps promote the policies that make housing a national priority. Since 1942, NAHB has been serving its members, the housing industry and the public at large. To learn more, visit www.nahb.org.