New home sales fell 0.6% in June compared with May to reach a seasonally adjusted annual rate of 617,000, according to estimates from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Year over year, new home sales were down 7.4%.
The median sales price of a new home sold in June was $417,300. The average sales price was $487,200.
As of the end of the month there were about 476,000 new homes available for sale in the U.S. That’s about a 9.3-month supply at the current sales rate.
“Many potential buyers are remaining in a holding pattern due to elevated mortgage rates that averaged near 7 percent in June,” says Carl Harris, chairman of the National Association of Home Builders (NAHB), in a statement. “However, moderating inflation suggests lower interest rates in the months ahead and that should bring more buyers off the sidelines.”
“Though new home inventory in June remained elevated at a 9.3 months’ supply at the current building pace, there is still a long-run need for more construction because existing inventory remains relatively low,” adds Jing Fu, director of forecasting and analysis for NAHB. “Due to a lack of resale homes for sale, the combined inventory for new and existing single-family homes remains lean at a 4.7 months’ supply, according to NAHB estimates.”
Photo: Alexander Andrews