Meyers Research: Pending New Home Sales Jump 32.7% Year-Over-Year
Meyers Research's New Home Pending Sales Index, backed by data from Zonda and Metrostudy, shows pending sales increased month-over-month and year-over-year across the U.S. The New Home PSI came in at 150.0 for July, representing a 32.7 percent increase from July 2019. On a month-over-month basis, new home sales rose by 5.3 percent from June. July's data highlights that the strength of the housing market is carrying on later in the year than the typical seasonality.
"The new home market has everything going for it right now including limited resale supply, fear of missing out, heightened dissatisfaction of our current living situation, low mortgage rates, months of saving money, and increased demand from key demographic cohorts," says Ali Wolf, chief economist at Meyers Research.
Pending new home sales trended above July 2019 levels in nearly every top market across the country. Activity in New York is still down year-over-year but has posted a month-over-month increase for the third consecutive month.
The best new home markets in July were Denver, Salt Lake City, and Raleigh.
"Builders are raising prices today to temper the demand," says Wolf. "The higher prices are not acting as a deterrent for buyers right now, but we are keeping our eyes on affordability challenges down the road."