Sales of new single-family homes surged in July as a dip in mortgage rates benefited builders.  

Specifically, July’s seasonally adjusted annual rate of 739,000 represented a 10.6% jump from June’s upwardly revised rate of 668,000, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Year over year, sales were up 5.6% from 700,000. 

July’s figure blew past the consensus estimate of 624,000, First American Financial Deputy Chief Economist Odeta Kushi noted. 

“The housing market’s bright spot — the new home market — continues to shine, outperforming the existing-home market,” Kushi said in a release. “July new-home sales increased to the highest level since May 2023, while existing-home sales have struggled to gain momentum, remaining near a more than 13-year low.” 

The median price of a new home sold during the month rose to $429,800, compared to $416,700 in June. Year over year, the median price was down from $435,800 in July 2023.     

By region, the pace of new-home sales was up across the board, led by the West, where sales rose 33.8% month over month, and followed by gains of 9.9% in the Midwest, 6.9% in the Northeast and 2.9% in the South.  

Months’ supply of new homes for sale fell 10.7% from 8.4 months in June to 7.5 months in July. Year over year, months’ supply was up 2.7% from 7.3 months.