Sales of new single-family houses in August 2014 were at a seasonally adjusted annual rate of 504,000, according to estimates released last week by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 18.0 percent above the revised July rate of 427,000 and is 33.0 percent above the August 2013 estimate of 379,000.
The median sales price of new houses sold in August 2014 was $275,600; the average sales price was $347,900. The seasonally adjusted estimate of new houses for sale at the end of August was 203,000. This represents a supply of 4.8 months at the current sales rate.
"This jump in sales activity is in line with our latest surveys, which indicate builders are seeing increased traffic and more serious buyers in the market for single-family homes," said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del.
"This robust level of new-home sales activity is a good sign that the housing recovery is moving towards higher ground," said NAHB Chief Economist David Crowe. "Historically low mortgage rates, attractive home prices and firming job and economic growth should keep the housing market moving forward in 2014."
Regionally, new home sales rose 50 percent in the West, 29.2 percent in the Northeast and 7.8 percent in the South. Sales were unchanged in the Midwest.
The inventory of new homes for sale edged up to 203,000 in August, which is a slim 4.8-month supply at the current sales pace.