The housing market continued to boom in August, as low mortgage rates and pandemic-driven demand pushed new home sales above 1 million for the first time in 14 years.
Sales of new single-family homes rose 4.8% in August from July to a seasonally adjusted annual rate of 1.01 million, the Commerce Department said Thursday. Economists polled by the Wall Street Journal had expected a 0.3% decline to 898,000. August sales were 43% above the year-earlier level.
The new-homes data are volatile and August’s figures came with a margin of error of 10.5 percentage points. July sales were revised up to 965,000 from 901,000 initially.
Based on the current rate of sales, there is a 3.3-month supply of new homes, down from 4 months in July, 4.6 months in June and 5.4 months in May.
“Strong sales have depleted inventories of new homes for sales, which