Sales of new single-family homes in June fell to an annual rate of 312,000, according to figures from the U.S. Department of Commerce, which is 1.0 percent below the May rate of 315,000 but 1.6 percent above the June 2010 estimate of 307,000.
Sales of new single-family homes in June fell to an annual rate of 312,000, according to figures from the U.S. Department of Commerce, which is 1.0 percent below the May rate of 315,000 but 1.6 percent above the June 2010 estimate of 307,000.
Reuters reported that, while sales fell in June, prices rose and supply declined, signaling that the market for new homes "was starting to stabilize." The median sales price for a new home increased 5.8 percent last month to $235,200.
"Today's report shows that new-home sales remain in a holding pattern at relatively low levels," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "This reflects what we are hearing from builders in the field, who continue to see uncertainty in the marketplace and are reacting accordingly by keeping inventories at a record low. With inventories at razor-thin margins, any uptick in demand will generate increased building activity in the months ahead."
NAHB senior economist Robert Denk said a housing and economic recovery go hand-in-hand. "Improving confidence in the broader economic recovery-in particular, solid job growth-will bring buyers back into the housing market," he said. "But as policymakers debate major changes to the housing finance system, higher down payment requirements, reducing conforming loan limits and whether to tamper with the mortgage interest deduction, this only fuels consumer uncertainty and keeps the housing market recovery from gaining any real momentum."
