Home Sales Surge While Evictions Loom
This morning, the Commerce Department announced new home sales had risen +13.8% in June to a 776k annualized pace, the best June performance in 13 years. Robust sales chipped away at housing supply as the available inventory of new homes continued to decline, slipping from a 5.5 month supply to 4.7. This rise in demand, in turn, boosted prices. The median price for a new home climbed +6.1% month-over-month to $329,200, not quite a record high, but close. Although new home sales make up just 10% to 15% of total sales, the entire sector is heating up.