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09-08-20 | Economic News

Housing Market Leads Economic Growth

Newly Built Single-Family Increased by 13.8%

NAHB chief economist is optimistic about the housing numbers for June.

Positive economic news came from the National Association of Home Builders (NAHB). They showed data from the US Department of Housing and Urban Development and the US Census Bureau, revealing the housing market in great shape. It was announced that sales for newly built single-family increased by 13.8% in June, equating to 776,000 units for the month when the rate is seasonally adjusted. In comparison to June of 2019, the rate is 6.9% greater. NAHB believes that these numbers reflect that the housing market is leading the country's economic growth during the pandemic.

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Additionally, Robert Dietz, chief economist for NAHB, commented on the substantial numbers in saying, "Along with rising builder sentiment, we are seeing increasing consumer demand in the suburbs, exurbs and rural areas. 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."

Furthermore, more information regarding the nature of the housing market showed that inventory dropped with 307,000 new single-family homes for sale, which is about 7% lower than it was in June 2019 and the lowest value since 2016. The median sales price of the houses was $329,200, while the median price of a new home sale in the previous year was $311,800. Overall, these numbers are believed to be perceived positively. With so much economic uncertain, it is encouraging to see growth in the housing market.

Filed Under: HOUSING, NAHB, PANDEMIC, ECONOMY
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