After rebounding in May, new home sales plummeted 5.3% in June but were up 2.4% compared with June 2017, according to estimates from the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
The approximately 631,000 new home sales in June was down from about 666,000 in May but up from about 616,000 in June 2017.
Regionally, new home sales rose 36.8% in the Northeast but fell 13.4% in the Midwest, 7.7% in the South and 5.2% in the West.
The median sales price of new home sold in June was $302,100. The average sales price was $363,300.
As of the end of the month there were about 301,000 new homes for sale in the U.S., about a 5.7-month supply at the current sales rate.
“Uncertainty caused by tariffs and the talk of trade wars are making home buyers more cautious, and builders are taking note of this situation,” says Randy Noel, chairman of the National Association of Home Builders (NAHB), in a statement. “Not only are consumers and builders concerned about the current lumber tariffs, but also the next round of proposed tariffs on a number of goods and services.”
“Though this is the lowest monthly annualized sales pace since October 2017, new home sales for the first half of 2018 are up 6.9 percent on a year-to-date basis compared to last year,” adds Robert Dietz, chief economist for NAHB. “This indicates solid demand for new home construction.”