Contracts for new, single-family home sales in the United States declined in July, falling -1.7% to a 627,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau today. The decline came off an upwardly revised June estimate, which was increased from an initial reading of 631,000 to a new estimate of 638,000.
Explained Bloomberg Tuesday, the fall in US homeownership also reflects the fact that less creditworthy borrowers have been shut out of the housing market since the financial crisis. The Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit shows that while mortgages for people with higher credit scores have increased, loans for those with less-than-stellar ratings have dried up.
Despite the disappointing July estimate, total sales for the first seven months of 2018 (401,000) were +7.2% higher than the comparable total for 2017 (374,000).
New-homes-for-sale inventory increased in July to 309,000 single-family homes for sale. The current months’ supply stands at a healthy level of 5.9. Given tight existing home inventory, more new homes can be absorbed by the market.
Median new home sales price increased in July to US$328,700, detailed the NAHB Eye on Housing blog.
Elsewhere, a large number of individuals directly involved in the US housing market crash were emailing jokes to each other about causing a fail of the US economy, authorities released today. Madison’s will have the full story on that despicable activity soon.