Thursday, July 24, 2014

New Home Sales Sharply Decline in June

New home sales declined sharply in June to an annualized pace of 406,000 units. May’s headline index was revised down by 62,000 units. June’s pace was 8.1% below May’s, and is the second slowest pace all year. June’s report was 11.5% below year ago levels.

The declines in June were broad-based, with all four regions declining. However, due to the stronger gains in May, only two of the four regions are below the pace from April. The Northeast posted the sharpest decline at 20.0%. The South, Midwest and West declined 9.5%, 8.2% and 1.9% respectively.

Due to depressed sales in June, the supply of homes increased to 5.8 months, the highest value since October 2011.

The median price of a new home shrank 1.1% to $276,700. However, the median price is 5.3% above year ago levels.

Read the Census report.

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