Sales of new homes dropped significantly
in June according to information released this morning by the U.S. Census
Bureau and the Department of Housing and Urban Development. Sales fell 8.4 percent from May to a
seasonally adjusted annual rate of 350,000 which was still an improvement of 15.1
percent from June 2011. The May estimate
of 382,000 was a substantial upward revision from the original estimate of 369,000
released in June.
On a non-seasonally adjusted basis new
home sales in June totaled 33,000 compared to 36,000 in May and 28,000 one year
earlier. There were 144,000 homes for
sale at the end of June which represents a 4.9 month inventory at the present
sales rate compared to 143,000 homes on the market or a 4.5 month supply at the
end of May.
Much of the decrease in the national
numbers was due to a dramatic downturn in the Northeast where new home sales
fell 60 percent from May levels to a seasonally adjusted annual rate of 16,000
compared to 40,000 in May and unchanged from June 2011. Sales in the South were down 8.6 percent to a
rate of 181,000 compared to 198,000 in May but this rate was still 6.5 percent
higher than sales a year earlier. Sales
were up slightly in the West to 98,000 compared to 96,000 the previous month,
an increase of 2.1 percent. The annual
rate of sales in June was 36.1 percent higher than during the same period in
2011. The Midwest saw a 14.6 percent
increase to an annual rate of 55,000 compared to 48,000 in May and 19.6 percent
higher than the 46,000 rate in June 2011.
The median sale price of a new home sold
in June was $232,600 and the average was 273,900. The median and average prices in June 2011
were $240,200 and $273,100 respectively.