New Home Sales Rise to Post-Recession High in June
|New Home Sales Gain in June
Sales for new homes rose more than the consensus forecast in June, increasing 3.5 percent to a seasonally adjusted annual rate of 592,000 homes (top chart). The previous month's data, which showed a 6.0 percent decline, was also revised higher and now shows no change. New home sales are up 25.4 percent from a year ago and June’s 592,000-unit pace marks a post-recession high, as new home sales are at their highest level since February 2008.
For the first six months of 2016, new home sales are running a strong 10.1 percent ahead of their year-ago level. At the regional level, new home sales in the Northeast and Midwest have seen the greatest strengthening, reporting a 64.7 percent and 17.5 percent pickup, respectively, on a year-todate basis. Both were helped by mild winter weather. New home sales in the South and West are each up a more modest 6.5 percent.
Months’ Supply Edges Lower
A shortage of inventory remains one of the greatest challenges for the U.S. housing market. The months’ supply of new homes fell to 4.9 months in June, as the pace of sales rose faster than inventories. Inventories ticked up slightly to a seasonally adjusted 244,000 homes available for sale (middle chart). The bulk of inventory continues to be concentrated in homes underconstruction, which account for 59 percent of new home inventory. Completed inventory accounts for just 23 percent of homes available for sale.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.