New-Home Sales Fell 6.6% in June
As Inventories Rose, Prices Declined
By JEFF BATER
July 26, 2007
WASHINGTON -- New-home sales took their fifth fall in six months during June, while a measure of inventory rose and the median price dropped, the government said Thursday.
Meanwhile, demand for expensive goods climbed for the fourth time in five months during June, spurred by stronger demand for airplanes, the government reported Thursday.
Sales of single-family homes decreased by 6.6% to a seasonally adjusted annual rate of 834,000, the Commerce Department said Thursday. May new-home sales fell 2.2% to an annual rate to 893,000; originally, the government said May sales dropped by 1.6% to 915,000.
Demand rose 10.0% in April and declined 1.2% in March, 5.6% in February and 12.7% in January.
The median estimate of 26 economists surveyed by Dow Jones Newswires was a 1.6% decrease in June sales to a 900,000 annual rate.
Year-to-year, new-home sales were 22% lower than the level in June 2006.
The moribund housing sector has pulled down U.S. economic growth for six straight quarters, and analysts expect more of the same going forward. They think a large inventory of unsold homes will depress prices, which dilutes incentive to invest in property. A report Wednesday showed demand in June for existing homes fell a fourth straight time, tumbling to the lowest point since November 2002 amid higher mortgage rates and tightening lending standards.
Thursday's data showed the ratio of new houses for sale to houses sold climbed during June, rising to 7.8 from 7.4 in May. There were an estimated 537,000 homes for sale at the end of June, unchanged from May.
The median price of a new home fell by 2.2% to $237,900 in June, down from $243,200 in June 2006. The average price increased by 3.7% to $316,200 from $305,000 a year earlier. In May this year, the median price was $241,000 and the average was $310,800.
Regionally last month, new-home sales decreased 27.1% in the Northeast, 22.5% in the West, and 17.1% in the Midwest. Demand rose 7.6% in the South.
An estimated 77,000 homes were actually sold in June, down from 82,000 in May, based on figures not seasonally adjusted.
As Inventories Rose, Prices Declined
By JEFF BATER
July 26, 2007
WASHINGTON -- New-home sales took their fifth fall in six months during June, while a measure of inventory rose and the median price dropped, the government said Thursday.
Meanwhile, demand for expensive goods climbed for the fourth time in five months during June, spurred by stronger demand for airplanes, the government reported Thursday.
Sales of single-family homes decreased by 6.6% to a seasonally adjusted annual rate of 834,000, the Commerce Department said Thursday. May new-home sales fell 2.2% to an annual rate to 893,000; originally, the government said May sales dropped by 1.6% to 915,000.
Demand rose 10.0% in April and declined 1.2% in March, 5.6% in February and 12.7% in January.
The median estimate of 26 economists surveyed by Dow Jones Newswires was a 1.6% decrease in June sales to a 900,000 annual rate.
Year-to-year, new-home sales were 22% lower than the level in June 2006.
The moribund housing sector has pulled down U.S. economic growth for six straight quarters, and analysts expect more of the same going forward. They think a large inventory of unsold homes will depress prices, which dilutes incentive to invest in property. A report Wednesday showed demand in June for existing homes fell a fourth straight time, tumbling to the lowest point since November 2002 amid higher mortgage rates and tightening lending standards.
Thursday's data showed the ratio of new houses for sale to houses sold climbed during June, rising to 7.8 from 7.4 in May. There were an estimated 537,000 homes for sale at the end of June, unchanged from May.
The median price of a new home fell by 2.2% to $237,900 in June, down from $243,200 in June 2006. The average price increased by 3.7% to $316,200 from $305,000 a year earlier. In May this year, the median price was $241,000 and the average was $310,800.
Regionally last month, new-home sales decreased 27.1% in the Northeast, 22.5% in the West, and 17.1% in the Midwest. Demand rose 7.6% in the South.
An estimated 77,000 homes were actually sold in June, down from 82,000 in May, based on figures not seasonally adjusted.
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