ARLINGTON, Va.—New home sales decreased 5.3% in June from the previous month, with sales retreating in three of the four regions. The median sales price also fell, which NAFCU Research
Assistant Yun Cohen attributed to fewer sales in the pricier West region.
As CUToday.info reported here, home sales have now declined for three straight months.
“According to the National Association of Home Builders, buyer traffic showed slight improvement in July and builder sentiment remained high,” Cohen said in a NAFCU Macro Data Flash report. “Looking ahead, higher mortgage rates and rising construction costs could add to affordability woes, but the outlook is aided by a strong labor market and higher after-tax income.”
Data released by the Census Bureau showed new home sales fell to 631,000 annualized units in June, which represented a 2.4% increase from a year ago. May’s sales were revised downward by 23,000.
Median Sales Price
The median sales price of new homes fell to $302,100 in June from $309,700 in May; June’s prices were 4.2% lower than a year ago and reached the lowest level since February 2017, Cohen said.
In June, sales declined in the Midwest (-13.4%), South (-7.7%) and West (-5.2%). Sales in the Northeast surged 36.8%.
Based on current-month sales, there were 5.7 months of supply in June, up from 5.3 months in May. The number of unsold homes left on the market rose to 301,000 units, which represents a 10.3% increase from a year ago, Cohen noted.