Housing Remains a Bright Spot for the Economy

by Robert Hughes
The American Institute for Economic Research

Sales of new single-family homes rose to the fastest pace since September 2006. Total sales rose 4.8 percent in August to a 1.011 million seasonally adjusted annual rate and are up an astonishing 43.2 percent from a year ago (see top chart).

Sales rose in two of the four regions tallied: sales surged 13.4 percent in the South – the largest region by sales volume – putting sales 50.0 percent above year-ago levels while sales were up 5.0 percent in the Northeast, leaving that region’s sales rate 27.3 percent above the year-ago pace. However, sales were down 21.4 percent in the Midwest (but still 54.7 percent above year-ago levels) and sales in the West decreased 3.1 in August and were 13.2 percent below the year-ago level.

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