• June new home sales rose 3.5 percent from May and 25.4 percent year-over-year, to 592,000 units (SAAR) according to the U.S. Census Bureau. May data was also revised sharply upward.
• The median price of new homes sold in June rose 6 percent year-over-year. The inventory of new homes for sale rose to 244,000, up 13 percent year-over-year.
• New home sales have risen in three of the past four months. Since March, new home sales and existing home sales have both risen in every month but May.

Today’s June new home sales data is undoubtedly good news for the market, with sales reaching their highest level since February 2008, and a sign builders are getting back in the game. Despite these higher levels of new homes sales, we need even more new construction to move the needle on current inventory shortages, especially among entry-level homes. This pick-up in new construction, though, will hopefully help ease critically low inventory of homes for sale overall and give buyers at least modestly more choices. The seasonally adjusted price of new homes has also been more or less flat over the past six months, another sign builders are broadening their efforts and focusing a bit more on the lower and middle tiers of the market. Looking ahead, this new home sales momentum should continue, with the strong starts and permits activity we’re seeing today filtering into closed sales in coming months.