The Rising Influence of Rising Affluence

[DewDiligence]

(PCL)—New US single-family homes hit another post-recession high in August:

http://www.wsj.com/articles/u-s-new-home-sales-up-5-7-in-august-1443103942

Sales of newly built homes reached the highest level since early 2008 in August, evidence that demand for housing is strengthening heading into the fall. Sales of new, single-family homes rose by 5.7% [relative to July 2015] to a seasonally adjusted annual rate of 552,000, the Commerce Department said Thursday.

…From a year earlier, sales were up 21.6% in August.

…Home-builder sentiment is at its highest level in nearly a decade, according to a survey earlier this month from the National Association of Home Builders. The group reports increased buyer traffic and improving sales conditions. Builders however are concerned about future sales conditions, including the expectation that interest rates will rise later this year.

…Despite a large increase in sales, new construction of single-family homes only has increased 8.7% from a year ago in August [+8.7% YoY is not bad], according to separate Commerce data. As a result, the inventory of available properties is limited.