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U.S. New Home Market Cap Highest Since August 2006

The market for new homes in the U.S. is continuing its recent torrid pace. Based on the latest sales data reported by the U.S. Census Bureau, the preliminary nominal estimate of the market capitalization for new homes was $30.6 billion in August 2020.

Taking the trailing twelve-month average of the market cap for new homes to factor out seasonality in the data while factoring in data revisions in previous months, we estimate August 2020’s adjusted market cap to be $25.76 billion. In nominal terms, this is the highest this figure has been since August 2006, which can be seen in a chart showing the historical market cap data going back to January 1976.

Perhaps more remarkably, the median sale price of new homes sold in the U.S. fell to an initial estimate of $312,700 in August 2020. The initial estimate of the average sale price of a new home sold

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New home sales surge to highest level since before the Great Recession

The numbers: Sales of new single-family homes in August exceeded an annual rate of 1 million for the first time since 2006, as buyers were forced into the market for newly-constructed properties thanks to the dearth of home listings.

New home sales occurred at a seasonally-adjusted, annual rate of 1.011 million, the Census Bureau reported Thursday. That represents a 4.8% increase from an upwardly-revised pace of 965,000 homes in July. Compared with last year, new home sales are up 43%.

Economists polled by MarketWatch had expected home sales to drop to median pace of 900,000.

What happened: Not all parts of the country saw an uptick in sales despite the historically high rate nationally. New home sales fell 21.4% in the Midwest and 1.7% in the West. Comparatively, the South saw the biggest increase in sales with a 13.4% jump, while sales volumes rose by 5% in the Northeast.

The

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As Home Sales Reach Highest Level Since 2006, Luxury Sales Boom

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Joe Raedle/Getty Images

The housing market continued to boom in August as existing home sales reached a pace not seen in more than a decade, fueled in part by demand from high-end buyers.

The seasonally adjusted annual rate of existing home sales reached 6 million for the first time since December 2006, the National Association of Realtors, or NAR, said Tuesday morning.

The housing market is demonstrating a “super V-shaped” recovery as home sale activity outperforms pre-pandemic levels, NAR chief economist
Lawrence Yun
said on a Tuesday call with reporters. Existing home sales rose 2.4% from July and 10.5% year-over-year, the trade group reported. Among single-family homes, those that sold for $1 million or more rose 44% compared with last year, more than any other price point.

“Right now, it is a booming market on the upper-end,” Yun said, citing a trend toward homes with more room that

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New home sales surge to highest level since before the Great Recession, as buyers are pushed into the construction market

The numbers: Sales of new single-family homes in August exceeded an annual rate of 1 million for the first time since 2006, as buyers were forced into the market for newly-constructed properties thanks to the dearth of home listings.

New home sales occurred at a seasonally-adjusted, annual rate of 1.011 million, the Census Bureau reported Thursday. That represents a 4.8% increase from an upwardly-revised pace of 965,000 homes in July. Compared with last year, new home sales are up 43%.

Economists polled by MarketWatch had expected home sales to drop to median pace of 900,000.

What happened: Not all parts of the country saw an uptick in sales despite the historically high rate nationally. New home sales fell 21.4% in the Midwest and 1.7%. Comparatively, the South saw the biggest increase in sales with a 13.4%, which sales volumes rose by 5% in the Northeast.

The median sales price in

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Existing-Home Sales Hit Highest Level Since December 2006

Existing-home sales continued to climb in August, marking three consecutive months of positive sales gains, according to the National Association of Realtors. Total inventory saw a drop from July to August driven by lumber shortages caused by the California wildfires.

 

Each of the four major regions experienced both month-over-month and year-over-year growth, with the Northeast seeing the greatest improvement from the prior month. Year-over-year prices also saw a dramatic increase.

 

Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 2.4% from July to a seasonally-adjusted annual rate of 6.00 million in August. Sales as a whole rose year-over-year, up 10.5% from a year ago (5.43 million in August 2019).

 

“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market,” said Lawrence Yun, the Realtors’ chief economist. “Further gains in sales are likely for the remainder of

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U.S. Home Sales Spike in August, Highest Levels Since December 2006

Median home prices nationwide also hit record setting $310,000

According to new data by the National Association of Realtors, existing U.S. home sales continued to climb in August 2020, marking three consecutive months of positive sales gains. Each of the four major regions experienced both month-over-month and year-over-year growth, with the Northeast seeing the greatest improvement from the prior month.

Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 2.4% from July to a seasonally-adjusted annual rate of 6.00 million in August. Sales as a whole rose year-over-year, up 10.5% from a year ago (5.43 million in August 2019).

Thumbnail image for lawrence-yun.jpg

Lawrence Yun

“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market,” said Lawrence Yun, NAR’s chief economist. “Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and

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New Home Construction in Canada Hits Its Highest Since 2007

(Bloomberg) — Construction on new homes surged to the highest level in more than a decade as Canada’s housing market continues to defy expectations of a slowdown.

Housing starts surged to 262,396 units in August on an annualized basis, up 6.9% from an already elevated 245,425 units a month earlier, Canada Mortgage and Housing Corp. said Wednesday in Ottawa. The highest monthly total since September 2007 was powered by new construction in Toronto and Vancouver, particularly multiple units like condos.

It’s the latest sign of a housing market that’s booming, even as the economy emerges from the steepest downturn since the Great Depression. Prices for existing homes in the largest cities such as Toronto have climbed to record highs on the back of strong demand, scant inventory and historically low borrowing costs.

Multiple-unit starts in Toronto surged in Toronto, Vancouver and Ottawa, CMHC said. But there may be drawbacks.

“The

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