After the largest downward revision in the history of the series, new home sales dropped 8.1 percent in June. Declines were seen in each Census region and across most sales price groups.
Back to Where We Started
- Home sales were expected to fall in June, but that was after an unusually-large gain was originally posted in May. More than half of May’s gain was revised away and the decline in June erased the remainder, pushing the headline number to a low for the second quarter. Judging from the mortgage applications data, home demand remains weak; however, builder sentiment and existing home sales are improving again.
Sales and Starts Slip in the South
- Through the volatility in the data, new home sales have hardly budged in nearly two years, which has contributed to the rise in inventory. The growing number of new homes available for sale may have contributed to June’s pullback in housing starts.
- The South posted the largest decrease in sales this month, which may explain the sharp decline in residential construction in the region. All other Census regions also saw sales drop this month
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