August U.S. Home Sales Rise Modestly

Sales of new homes in the U.S. rose modestly in August as rising prices continue to sideline potential buyers, says the U.S. Commerce Department. Sales of news homes rose 1.5 per cent reaching a seasonally adjusted annual rate of 740,000. That’s more than economists had expected and follows an increase in July, which was revised upward to a seasonally adjusted rate of 729,000 houses. July’s jump came after three consecutive declines in April, May, and June as builders grappled with surging lumber prices and a shortage of workers. Overall, sales of new homes are 24.3 per cent below the pace of one year ago. Sales have cooled in 2021 since January’s rate of 993,000 units, but remain at historically high levels.