Dennis Norman
This morning the U.S. Department of Commerce released a report showing the sale of New Homes in June were at a seasonally adjusted annual rate of 384,000, an 11% increase from May. The year over year decline lessened, June’s numbers are down 21.3% from a year ago which is a substantial improvement over May’s decline of 33% from the year prior.
Median prices for new homes decreased from $221,600 in May to $206,200 for June. Homes in the $150,000 – $299,999 range continue to dominate sales with 56% of the sales for June falling in this price range.
Perhaps the best news in the report is on the inventory of new homes. Inventory declined again to 281,000 homes which represents an 8.8 month supply based upon current sales rate. This is the lowest inventory we have seen in a long time and is a very positive sign to me.
These figures are once again consistent with my earlier comments that I think the market is leveling off and perhaps is close to finding it’s bottom. As new home inventories continue to decline we should see more strength in sales numbers.
Related posts:
- Shadow Inventory Drops Slightly but still at Nine-Month Supply
- New Home Sales In US Incease for fourth consecutive month; Taking over a year to sell them though
- Significant increases in new home sales in Northeast & Midwest for May
- Mortgage delinquencies and foreclosure inventory increase in June
- New home sales drop in June; 2011 new home sales on track to be worst year ever