The latest update in housing numbers from the US Department of Housing and Urban Development came out, showing that rising sales have continued into August. The housing market has been doing so well that sales for newly built, single-family homes reached its highest mark since 2006. Looking at a seasonally adjusted annual rate, the data shows an increase of 13.9%, which equates to 901,000 total units. Compared to the July 2019 numbers, the 2020 statistics are 36.3% higher, with new home sales being up by 8% on a year to date basis.

 

In acknowledgment of the housing update, the National Association of Home Builders (NAHB) chairman, Chuck Fowke, talked about the trends they have been noticing and how that relates to the cause of the increase. Fowke commented, "This is exactly what NAHB's builder confidence survey has been indicating in recent months. Consumers are being driven by low-interest rates, a growing focus on the importance of housing, and a shift in buyers seeking homes in lower-density areas."

NAHB's chief economist Robert Dietz's remarks further elaborated on Fowke's explanation as he cited the suburban shift in which prospective home buyers have been seeking out affordable markets intending to obtain more residential space. Dietz continued by examining what he sees as the upcoming future of the housing market. He found that "sales are increasingly coming from homes that have not started construction, with that count up 34% year-over-year. In contrast, sales of completed, ready-to-occupy homes are down almost 24%. These measures point to continued gains for single-family construction ahead." Furthermore, the current supply of new single-family homes is at its lowest point since 2013, which is believed to exemplify the need for more construction in this market.