U.S.: New Home Sales Down 8.1% in June

U.S.: New Home Sales Down 8.1% in June
Photo by David M. Kinchen

Sales of new single-family houses fell 8.1 percent to a seasonally adjusted annual rate of 406,000 units in June, according to data released Thursday, July 24, 2014 by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales numbers for May were revised downward to 442,000.

“The numbers are a little disappointing, but May was unusually high and some pull back isn’t completely unexpected,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “Our surveys show that builders are confident about the future and we are still seeing a gradual upward trajectory in housing demand.”

“With continued job creation and economic growth, we are cautiously optimistic about the home building industry in the second half of 2014,” said NAHB Chief Economist David Crowe. “The increase in existing home sales also bodes well for builders, as it is a signal that trade-up buyers can move up to new construction.”

Regionally, new-home sales were down across the board. Sales fell 20 percent in the Northeast, 9.5 percent in the South, 8.2 percent in the Midwest and 1.9 percent in the West.

The median sales price of new houses sold in June 2014 was $273,500; the average sales price was $331,400. The seasonally adjusted estimate of new houses for sale at the end of June was 197,000. This represents a supply of 5.8 months at the current sales rate.

 

 

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