New home sales fall below 600,000

New home sales fell again in June, erasing more than the increase recorded in May. The US Census Bureau and Department of Housing and Urban Development said sales during the month came in at a seasonally-adjusted annual rate of 590,000 units. This was an 8.1% decline from the estimated rate of 642,000 in May, a revision from the rate of 696,000 units originally reported. June sales were down 17.4% from the previous year.

The analysts’ consensus estimates were considerably higher than the reality. People interviewed by Trade economy predicted a rate of 660,000 while the Econoday expectations were slightly lower at 664,000.

On an unadjusted basis, there were 49,000 new homes sold during the month, ie 10,000 less than in May. Year-to-date sales are down 13.4% from the same period in 2021 to 372,000 units.

At the end of June, there were about 463,000 new homes for sale, or 9.4 months’ supply at the current rate of sales. A year earlier, the inventory of 350,000 homes was estimated to have a 5.8 month supply.

The median sale price in June was $402,400 and the average was $456,800. In June 2021, the relative sale prices were $374,700 and $431,900.

Sales were decline in three regions but significant increase in the Midwest, an increase of 42.3 percent. They were down 5.3% in the Northeast, 2.0% in the South and 36.7% in the West. All four regions have lagged since the start of the year, ranging from -9.6% in the West to 24.8% in the Midwest.