HUD Archives: News Releases

CISNEROS SAYS 10-YEAR HIGH IN NEW HOME SALES SIGN OF STRONG ECONOMY AND GROWING HOMEOWNERSHIP

The report by the Department of Housing and Urban Development and the Census Bureau found that sales of new homes rose 5 percent in August to a seasonally adjusted annual rate of 832,000 -- the highest level since April 1986.

Through August of this year there were 537,000 new homes sold, compared with 467,000 during the same period last year -- a 15 percent increase in new home sales for the period.

The report also found that sales of new homes have exceeded 700,000 at a seasonally adjusted annual rate in every month this year -- an eight-month stretch. The last time new home sales were consistently this high was the eight-month period from November 1985 through June 1986.

"President Clinton's economic policies have played a key role in boosting new home sales in August to their highest level in 10 years, by increasing employment and household income and holding down interest rates," Cisneros said. "The increase in new home sales is good news for homebuyers and for our economy. It creates more homeowners and creates jobs in companies that build homes, supply building materials, and manufacture appliances and home furniture."

"Our efforts have already helped increase the number of American homeowners by 4.4 million families since 1993 to a record high of 66.1 million," Cisneros said. "The percentage of Americans owning homes -- 65.4 percent -- is at its highest level in over 15 years and near a record high."

Cisneros said the 58 private and public sector organizations that worked with HUD to form the National Partners in Homeownership last year also played an important role in helping to boost new home sales. The group is an unprecedented partnership working to sharply increase the number of first-time homebuyers.

The survey by HUD and the Census Bureau also found that since January:

• New home sales have averaged 759,000. If new home sales continue at this pace for the rest of the year, 1996 will have the highest rate of new home sales since 1978.
• New home sales in the South have averaged 336,000. If new home sales in the South continue at this pace for the rest of the year, 1996 will have the highest rate of new home sales ever for the South.
• New home sales in the Midwest have averaged 146,000. If new home sales in the Midwest continue at this pace for the rest of the year, 1996 will have the highest rate of new home sales in the Midwest since 1977.
• New home sales in the West have averaged 216,000. If new home sales in the West continue at this pace for the rest of the year, 1996 will have the highest rate of new home sales in the West since 1979.