According to data from the Commerce Department released on Wednesday, sales of new single-family houses in the U.S. fell in June, which was lower than what economists had anticipated. Here are the key details:
Decline in Sales
- New home sales decreased by 2.5% in June compared to the previous month.
- The seasonally adjusted annual rate of sales was 697,000.
Forecast vs Reality
- Economists polled by The Wall Street Journal had expected sales to decline to an adjusted rate of 725,000.
- The actual rate for May was revised down to 715,000 from the previously reported 763,000.
- Despite the decrease, sales in June were still 23.8% higher than the same period last year.
- Adjusted for seasonal shifts, sales stood at 563,000 a year ago.
- The median price of a new home dropped slightly in June to $415,400 from $417,300 in May.
Increase in Supply
- At the end of June, the rate of new houses available for sale was 432,000.
- This indicates a rise in supply, resulting in a 7.4-month inventory at the current sales rate.