July was a strong month for new home sales. According to the Census Bureau and Department of Housing and Urban Development, new home sales grew to a 654,000 seasonally adjusted annual rate recording the strongest monthly pace since October 2007. On a year-to-date basis, new home sales have improved 12% over comparable 2015 totals.
The downside of the growth is the lack of inventory. Total homes for sale fell to 233,000 which is only a 4.3 months’ supply. Levels below a 5.5 month supply show a need for additional inventory.
Another noteworthy feature about inventory conditions is that a rising count of new home sales are coming from homes under construction or homes that have not yet begun construction. In fact, in July, only 30% of new home sales were completed, ready-to-occupy homes. And the inventory of such homes remains flat, despite rising demand. As of July, there were only 57,000 completed homes for sale nationwide.
Epic Development is currently building in Grant Park, Northwest Atlanta (Riverside), Old Fourth Ward, Reynoldstown and Sandy Springs. For more information, visit https://epicdevelopment.com/available-homes/ or contact Scott Eaves at (404) 518-3820.
Graphs courtesy of the National Association of Home Builders