No Joy in New Home News
The report this morning on June new home sales blunted muchrnof the optimism generated by yesterday’s news about existing home sales. The Census Bureau and the Department ofrnHousing and Urban Development jointly reported that new home sales fell by 6.8rnpercent month-over-month to a seasonally adjusted annual rate of 482,000rnunits. </p
Further, May sales, originally reported as rising 2.2rnpercent from the previous month to a rate of 546,000 units were revised down torn517,000, lower than April’s number which was also lowered by 11,000 from an earlierrnrevised number. While June sales werern18.1 percent above those a year earlier they represented the slowest pace forrnnew home sales since last November.</p
The report was certainly not what was expected. Econoday’s survey of housing analysts hadrngathered estimates ranging from 535,000 to 570,000 units with a consensus ofrn550,000.</p
The decline was widespread, hitting every region but thernNortheast which has seen a particularly strong recovery from its unusuallyrnharsh winter. Sales there were up 28.0rnpercent from April and 23.1 percent year-over-year. </p
New home sales declined by 11.1 percent in the Midwest butrnremained 5.7 percent higher than a year earlier. In the South there was a 4.1 percent dip fromrnthe previous month but sales increased by 23.7 percent from June 2014. The West had the largest month-over-monthrndecrease at 17.0 percent but still posted a 10.9 percent annual increase. </p
On a non-adjusted basis new home sales nationally numberedrnan estimated 45,000 units, down from a revised 48,000 in May. May’s sales were originally estimated atrn51,000 units.</p
The median price of a new home sold in June was $281,800rncompared to $287,000 in June 2014. Thernaverage price declined from $338,100 a year earlier to $328,700.</p
At the end of June there were an estimated 215,000 new homesrnavailable for sale, an increase of 3.4 percent from May and 8.6 percent for thernprevious June. Homes currently for salernrepresent a 5.4 month supply at the current rate of sales, up from 4.8 monthsrnin May. Homes sold in June were on the market an estimated average of 4.0rnmonths.
All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.
Leave a Comment
By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...Late-Stage Delinquencies are Surging
Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...Published by the Federal Reserve Bank of San Francisco
It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...