U.S. New Home Sales Spike 5.4 Percent in July

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According to HUD and the U.S. Census Bureau, sales of newly built, single-family homes rose 5.4 percent to a seasonally adjusted annual rate of 507,000 units in July 2015.

"Our builders are reporting higher traffic and more serious buyers, and are adding inventory in anticipation of future business," said Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo.

"Today's report is in line with other government data and improving builder sentiment and shows a gradual but consistent housing recovery," said NAHB Chief Economist David Crowe. "As job growth and consumer confidence continue to strengthen, the housing market should make additional gains this year."

Regionally, the Northeast, South and West posted respective gains of 23.1 percent, 5.8 percent, and 6.7 percent. The Midwest registered a 6.9 percent decline.

The inventory of new homes for sale was 218,000 units in July. This is a 5.2-month supply at the current sales pace.