New Homes Sales – July 2022

New Home Sales, which measures signed contracts on new homes, were down 12.6% in July at a 511k unit annualized pace, which was much worse than expected.
Sales are now down almost 30% year over year. There were 464,000 homes for sale at the end of July, but only 45,000 or under 10% are actually completed…24% have not even been started and 66% are still under construction.
At the current pace of sales, there is a 10.9 months’ supply. But when factoring in the amount of completed homes, the month’s supply is really about 1 month. The median home price rose by 5.9% last month to $439,400, which is up a little over 8% year over year.
While we are clearly seeing an activity recession in housing, pricing is still quite strong.