WASHINGTON -- Housing Secretary Henry G. Cisneros said a
report issued today showing that new home sales in August hit the
highest level in 10 years is "a sign of a strong economy and
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
"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
The survey by HUD and the Census Bureau also found that
- 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.
Content Archived: January 20, 2009