New home sales declined 6.6% in June to a seasonally adjusted annual rate of 676,000, the lowest rate since April 2020, the U.S. Census Bureau and U.S. Department of Housing and Urban Development reported. Year-over-year, new home sales dropped 19.4%.
"The June data came in lower than expected, and we anticipate an upward revision next month," stated Robert Dietz, chief economist with the National Association of Home Builders. "Nonetheless, sales have trended lower as construction costs have increased and builders have sought to manage material delays and cost challenges in the construction pipeline, in addition to dealing with shortages of lots and labor in many housing markets."
The median sales price for new houses sold in June 2021 was $361,800, with an average sales price of $428,700.
Regionally, new home sales declined 27.9% in the Northeast, 7.8% in the South and 5.1% in the West. New home sales in the Midwest increased 5.7%.
There were 353,000 new homes for sale at the end of June, representing a supply of 6.3 months at the current sales pace.
