New Homes Sales Fall to a 5-month Low on Dramatic Downturn in Northeast

by devteam July 26th, 2012 | Share

Sales of new homes dropped significantlyrnin June according to information released this morning by the U.S. CensusrnBureau and the Department of Housing and Urban Development.  Sales fell 8.4 percent from May to arnseasonally adjusted annual rate of 350,000 which was still an improvement of 15.1rnpercent from June 2011.  The May estimaternof 382,000 was a substantial upward revision from the original estimate of 369,000rnreleased in June.</p

On a non-seasonally adjusted basis newrnhome sales in June totaled 33,000 compared to 36,000 in May and 28,000 one yearrnearlier.  There were 144,000 homes forrnsale at the end of June which represents a 4.9 month inventory at the presentrnsales rate compared to 143,000 homes on the market or a 4.5 month supply at thernend of May.</p

Much of the decrease in the nationalrnnumbers was due to a dramatic downturn in the Northeast where new home salesrnfell 60 percent from May levels to a seasonally adjusted annual rate of 16,000rncompared to 40,000 in May and unchanged from June 2011.  Sales in the South were down 8.6 percent to arnrate of 181,000 compared to 198,000 in May but this rate was still 6.5 percentrnhigher than sales a year earlier.  Salesrnwere up slightly in the West to 98,000 compared to 96,000 the previous month,rnan increase of 2.1 percent.  The annualrnrate of sales in June was 36.1 percent higher than during the same period inrn2011.  The Midwest saw a 14.6 percentrnincrease to an annual rate of 55,000 compared to 48,000 in May and 19.6 percentrnhigher than the 46,000 rate in June 2011.</p

The median sale price of a new home soldrnin June was $232,600 and the average was 273,900.  The median and average prices in June 2011rnwere $240,200 and $273,100 respectively.</p

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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