Sales of new homes surge 4.8% in August
By KEN SWEET - Sep. 24, 2020 10:27 AM EDT
This April 16, 2020 photo shows a real estate company sign that marks a home for sale in Harmony, Pa. U.S. new home sales plunged 15.4% in March as the lockdowns that began in the middle of the month began to rattle the housing market. The Commerce Department reported Thursday, April 23, that sales of new single-family homes dropped to a seasonally ajdjusted annual rate of 627,000 last month after sales had fallen 4.6% in February. (AP Photo/Keith Srakocic)

NEW YORK (AP) — The market for newly constructed homes in the U.S. continued its upward climb in August, despite the ongoing pandemic and lingering worries about the future of the U.S. economy.

The Commerce Department said sales new homes rose by a very strong 4.8% in August to a seasonally-adjusted annual rate of 1.01 million units. That's on top of the massive jump in new home sales that happened in July, climbing that month by 13.9%.

The gains reported Thursday by the The Commerce Department follow steep declines in March and April when COVID-19 infections spread in the U.S. The pace picked back up in the summer, driving home prices in many places to record highs. Record low mortgage rates have been a major driver of the sales, as well as pent up demand from earlier in the year during the lock downs.

New home sales are now up 43.2% from this point last year.

The median price of a new home sold was $312,800, according to the Commerce Department.