New home sales slumped to their lowest level since April 2020, falling 8.1% in June to a seasonally adjusted annual rate of 590,000, the National Association of Home Builders reported. Year-to-date, new home sales declined 13.4%.
“Buyers are balking due to deteriorating affordability conditions and growing sticker shock,” stated NAHB spokesperson Danushka Nanayakkara-Skillington. “Only 14% of new home sales in June were priced below $300,000. A year ago, it was 27%. Meanwhile, inventory levels are elevated and will contribute to near-term production declines as the market finds a new balance.”
The median sales price declined to $402,400 in June, a 9.5% drop compared with May, but up 7.4% compared with June 2021.
Regionally, year-to-date, new home sales fell 12.1% in the Northeast, 24.8% in the Midwest, 12.6% in the South and 9.6% in the West.
