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The purchase of new single-family homes rose by 1.5% for the 2nd time since July.
The builders are sweating to fill orders due to unstable supply chains and difficulty in finding workers.
The August sales gain was driven by a pickup in homes not yet built, showing construction activity will continue in the months to come.
The U.S. Census Bureau and the Department of Housing and Urban Development’s reports showed a new home’s median sales price is held at a record $390,900. 22% of the homes sold in August, were priced from $500,000 to $749,000 and approximately 9% were $750,000.
At the end of August, there were 378,000 new homes for sale, the highest since October 2008. While more than 94,000 of those had not even been started, there was a rise in the numbers of properties finished and under construction and showed small improvements in clearing builder backlogs.
With the recent speed of sales, it would take close to 6 months to finish the supply of new homes.
Stuart Miller, the executive chairman, of Lennar Corp., said that the supply chain for both land and construction is under huge pressure and is likely to continue into the fourth quarter and beyond.
Since the housing industry will not be able to recoup the supply shortage and increase production, so according to Miller the market will remain imbalanced, for a longer period of time.
Compared to earlier in the year when lumber prices were exorbitantly high they have come down said, the National Association of Home Builders in a report Monday.
Even though the mortgage rates are still low, some prospective buyers are dissuaded by high home prices.
In a recent consumer survey, only 29% of respondents which is less than half the number of people said that they feel now is a good time to buy a house.
Reference Source: National Mortgage News
