Sales of new single-family homes in America fell by 5.3 percent in June to a seasonally adjusted annual rate of 631K units, according to new data from the U.S. Census Bureau. That was a significantly larger decline than anticipated and the May gain was revised sharply lower. Regionally, new home sales jumped in the Northeast (+36.8 percent) last month but fell in the Midwest (-13.4 percent), the South (-7.7 percent), and the West (-5.2 percent).
The inventory of new single-family homes rose in June to the highest level since March 2009, and months’ supply increased to 5.7 based on the current (slower) sales pace. Further, the median selling price fell to $302,100 in June, the lowest level since February of last year and down 4.2 percent on an annual basis. The number of properties sold in which construction had not yet started lifted to a 4-month high in June, an encouraging sign that homebuilders will stay busy in the second half of 2018. Altogether, though, this was another disappointing report on the U.S. housing market that will be worth monitoring going forward since new home sales tend to head sharply lower ahead of a recession.
Sources: Econoday, U.S. Census Bureau, ZH, Bloomberg, FRBSL
Post author: Charles Couch