In July 2024, the U.S. housing market experienced a significant uptick in new home sales, reaching an annual rate of 739,000, which was a 10.6% increase from the previous month.
This figure surpassed expectations, with forecasts predicting a much lower increase. The median sales price of new homes slightly decreased from the previous year, indicating some relief in housing costs.
Despite earlier concerns about affordability due to rising mortgage rates, the data suggests a resilient demand for new homes.
This surge in sales also reflects a broader economic resilience, although some commentators noted that high sales might be driven by specific financial strategies available to the wealthy, suggesting a mixed outlook on housing affordability.
