From NAHB’s Eye on the Economy

July housing data brought good news for both the newly-built and existing home markets. July newly-built homes sales, as reported by the Census Bureau and HUD, rose 5.4 percent from June and 25.8 percent from July 2014. The increase brings annual new home sales to 507,000, or just over halfway back to a normal year of activity.

Median new home prices increased two percent from July 2014 and average prices increased 4.8 percent. Sale prices have increased because the composition of homes sold has shifted away from starter or first-time buyer homes and toward move-up buyer products. New home inventories increased in July to 218,000, the highest level in more than five years.

Good news continued for existing sales as well. The Pending Home Sales Index from the National Association of Realtors increased in July for the sixth time in seven months. The index increased 0.5 percent in July from an upwardly revised June report, and is up 7.4 percent from the same month a year ago.

For completed transactions, existing home sales increased for the third consecutive month in July, and remained at the highest level since February 2007. However, the first-time buyer share (28%) fell to the lowest level since January.