By the Numbers
July’s reading of 80 was down one point from June, but still signaled strong demand for housing, the National Association of Home Builders said.
During the four-week period ended July 11, the average weekly share of homes for sale with a price drop passed 4% for the first time since September 2020.
Meanwhile, the Mortgage Bankers Association’s seasonally adjusted purchase index rose 8% from the previous week.
Strong growth of single-family construction spending drove the increase, while spending on multifamily construction was flat, the National Association of Home Builders said.
In Boston, the index jumped 2.5% month over month and 16.2% year over year. The monthly increase was slightly down from the 2.6% rise recorded in March.
Inventory levels rebounded last month, finally showing signs of recovery following a year of historical declines.
Although pending sales are up 29% from last year, they are starting to slow down, dropping 9.7% from their peak four weeks ago.
Single-family housing starts were up 4.2% from April and 49.8% from May 2020, at 1,098,000, according to the U.S. Census Bureau and Department of Housing and Urban Development.
Housing inventory also saw an increase from year-ago levels last month.
Of the 99 million residential properties in the U.S., approximately 1.4 million (or 1.4%) are vacant this quarter, with “zombie” home rates increasing both quarterly (21%) and annually (5.6%).