US: New home sales jump in July - Wells Fargo

According to analysts from Wells Fargo,  new home sales took off in July, as strong job growth, low mortgage rates and increased construction brought buyers back in droves.

Key Quotes:

“Momentum is finally shifting back toward the new home market, particularly in the South, which has seen job growth surge this past year. Overall sales rose 12.4 percent in July, following a 1.7 percent gain in June. Sales through the first seven months of 2016 are up 12.4 percent from one year ago.

“While the Northeast posted the largest percentage gain in July, that region accounts for the smallest share of new home sales. The South accounts for well over half of all new home sales and has seen sales and new construction take off this year as job growth and in-migration have strengthened.

“Home price appreciation moderated in July, likely reflecting the shift in sales to lower priced markets in the South.”