Photographer: Daniel Acker/Bloomberg

Pace of U.S. New-Home Sales Suggests Steady Housing Strength

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The U.S. housing market is stabilizing near 10-year highs, according to government data Wednesday that showed sales of new homes were slightly less than forecast.

Highlights of New Home Sales (June)

  • Single-family home sales increased 0.8% m/m to 610k annualized pace (est. 615k)
  • Median sales price fell 3.4% y/y to $310,800
  • Supply of homes crept up to 5.4 months from 5.3 months; 272,000 new houses were on market at end of June

Key Takeaways

Americans, taking advantage of low mortgage rates and confident in a strong job market that’s providing steady wage gains, are still on the hunt for new homes. Prices fell from a year earlier as more moderately priced homes sold in June.

There were signs of progress on housing inventories, which were the highest since June 2009. The industry says it is still grappling with a lack of skilled workers and a limited number of plots to begin construction.

Other Details

  • June demand reflected a 12.5 percent increase in the West and a 10 percent gain the Midwest
  • May reading was revised to a 605,000 pace from a previously estimated 615,000
  • Commerce Department said there was 90 percent confidence that the change in sales last month ranged from a 11.3 percent drop to a 12.9 percent gain, underscoring the volatility of the data
  • New-home sales are tabulated when contracts are signed
  • Data released jointly by the Census Bureau and Department of Housing and Urban Development in Washington

— With assistance by Chris Middleton

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