Sales of new single‐family homes in July were at a seasonally adjusted annual rate of 708,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 1% above the revised June rate of 701,000 but is 27.2% below the July 2020 estimate of 972,000.

“By stage of construction, the share of completed homes sold ticked up slightly in July, but it is still near a 15-year low,” says Odeta Kushi, deputy chief economist at First American. “Remember builders are dealing with rising costs of materials, delays, and shortages of lots and labor.”

The median sales price of new houses sold in July was $390,500, while the average sales price was $446,000.

The seasonally adjusted estimate of new homes for sale was 367,000 at the end of July, representing a 6.2-month supply at the current sales rate.

“The outlook for new-home sales is largely dependent on the amount of new homes being built and demand for new homes,” continues Kushi. “The current pace of building is limited by multiple supply-side headwinds, but the July increase in the number of permits issued is a positive sign of more building to come.”