New home sales have now more than reversed the drop seen earlier in the year, reaching a 13-year high in June. The sales outlook is positive - new home buyer traffic has returned to 22-year highs, and new sales are well-placed to weather a second round of shutdowns. But recent delays to housing starts, and a surge in lumber prices, means new home inventory is starting to get stretched. Accordingly, we expect sales will end this year close to their current level of 776,000 annualised.
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