ARLINGTON, Va.—New home sales fell 2.5% in June to 697,000 annualized units, while sales in May were revised down 48,000 units, according to National Association of Realtors data.
Compared to last year, June’s sales were 23.8% higher.
“The modest pullback in month-over-month home sales indicates that affordability is still an obstacle to consistent growth, as dwindling inventories drive imbalances within supply and demand,” said NAFCU Economist Noah Yosif. “However, year-over-year sales are still strong, suggesting construction remains an essential counterweight to tightening inventories, attracting new entrants to the market by providing more options at affordable prices.”
More Than a Half-Year’s Supply
Based on current month sales, there were 7.4 months of supply in June, up 0.2% in May. The number of unsold homes left on the market increased 12,000 to 435,000. This represents a 3.7% decline from inventory levels a year ago, Yosif said.
Regionally, sales increased in the Northeast (20.6%) and the South (4.3%). Sales declined in the Midwest (-28.4%) and in the West (-13.9%), Yosif said.
Of note, the media new home price, non-seasonally adjusted, rose 3.5% to $416,000 – 7.6% lower than a year earlier, Yosif noted.
Construction to Likely Grow
“NAFCU anticipates that construction will likely exhibit further growth in tandem with an improving macroeconomic landscape as supply chains continue to stabilize and inflation remains on the downtrend,” Yosif concluded.
How to Get the Daily CU News Headlines In Your Inbox Each Day, For Free!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com