New-Home Sales Plunge 8.1%

New single-family home sales dropped 8.1% to a seasonally adjusted annual rate of 406,000 for June, according to a Commerce Department report released today.

In a double whammy hit to hopes for a continuing housing market recovery, May's new-home sales rate was revised sharply down to 442,000 from the previously published 504,000. Before today's revelation, May's sales were the highest seen since May 2008.

Analysts had expected a dip for June, but their 475,000 estimate proved overly optimistic. 

Source: Census.gov 

On a regional level, every part of the nation saw a sales decline. The Northeast led the percentage drop with a 20% decline, followed by a 9.5% decrease in the South. In the past 12 months, national sales of new homes are down 11.5%.

At the current rate of sales, there is an estimated 5.8 months of supply, compared with 5.2 months in May. The median sales price also softened, down $9,100 to $273,500, which is up 5.3% over the past 12 months.

This latest report follows on the heels of a National Association of Realtors report, which offered some respite with a pleasantly positive 2.6% bump for existing-home sales in June.

Today's new-home sales numbers are the latest in a series of mixed messages from the housing market. While existing-home sales are steady, June housing starts plummeted 9.3%. Investors will have to wait until Monday for the next news nugget, when June pending home sales are announced.

-- Material from The Associated Press was used in this report.

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  • Report this Comment On July 24, 2014, at 3:06 PM, Taurus88 wrote:

    What, how can it be?????

    What happened to the full blown housing recovery?

    What about all the new millennials breaking into the market?

    What about the record wage gains and job gains?

    Hmmm,....

    Must be the weather....

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