WASHINGTON (Dow Jones)--New-home sales fell slightly in June, but the level of demand was higher than projected and sales during prior months were stronger than earlier thought.
Sales of single-family homes decreased by 0.6% last month to a seasonally adjusted annual rate of 530,000, the Commerce Department said Friday.
May new-home sales fell 1.7% to an annual rate to 533,000; originally, the government said May sales fell by 2.5% to 512,000. April sales rose 5.7% to 513,000; earlier, Commerce had April up 4.8% to 525,000.
Economists had forecast a June sales rate of 505,000.
The decrease in June sales was the fifth in six months. Aside from a weak economy and soft job market, mortgage rates, while lower than in mid-2007, are on the rise again. The average for a 30-year loan was 6.32% in June, up from 6.04 in May and 5.76% in January, Freddie Mac data show. The June 2007 average rate was 6.66%.
Year over year, new-home sales were 33.2% lower than the level in June 2007.
The median price of a new home decreased by 2.0% to $230,900 in June from $235,500 in June 2007. The average price fell by 2.6% to $298,600 from $306,500 a year earlier. In May, the median price was $227,700 and the average was $298,900.
Declining prices have been stopping consumers from buying homes as they wait for still-lower prices.
In a promising sign, inventories kept receding, down to an estimated 426,000 homes for sale at the end of June from May's 450,000. The ratio of new houses for sale to houses sold slid in June to 10.0 from 10.4 in May. Originally, the government estimated the May ratio at 10.9. Bloated inventories are depressing prices and construction.
Regionally last month, new-home sales decreased 0.9% in the West and 2.0% in the South. The Northeast climbed 5.3% and the Midwest rose 2.5%.
An estimated 49,000 homes were actually sold in June, down from 51,000 in May, based on figures not seasonally adjusted.
-By Jeff Bater, Dow Jones Newswires, (202) 862-9249; jeff.bater@dowjones.com
5 comments:
*DJ Reuters/Univ Michigan End-Jul Sentiment 61.2; Jun 56.4
*DJ Reuters/Univ Michigan End-Jul Current Index 73.1; Jun 67.6
*DJ Reuters/Univ Michigan End-Jul Expectations 53.5; Jun 49.2
*DJ Reuters/U Michigan 12-Mo Inflation Forecast +5.1%; Jun +5.1%
*DJ Reuters/U Michigan 5-Yr Inflation Forecast +3.2%; Jun +3.4%
Nice UYG trade. I was in the wrong account at the time and wanted to grab it when it fell below 20 but missed it/ bounced too fast to pick up!
Fvck
Housing not as bad as expected either...
By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--New-home sales fell slightly in June, but the level of demand was higher than projected and sales during prior months were stronger than earlier thought.
Sales of single-family homes decreased by 0.6% last month to a seasonally adjusted annual rate of 530,000, the Commerce Department said Friday.
May new-home sales fell 1.7% to an annual rate to 533,000; originally, the government said May sales fell by 2.5% to 512,000. April sales rose 5.7% to 513,000; earlier, Commerce had April up 4.8% to 525,000.
Economists had forecast a June sales rate of 505,000.
The decrease in June sales was the fifth in six months. Aside from a weak economy and soft job market, mortgage rates, while lower than in mid-2007, are on the rise again. The average for a 30-year loan was 6.32% in June, up from 6.04 in May and 5.76% in January, Freddie Mac data show. The June 2007 average rate was 6.66%.
Year over year, new-home sales were 33.2% lower than the level in June 2007.
The median price of a new home decreased by 2.0% to $230,900 in June from $235,500 in June 2007. The average price fell by 2.6% to $298,600 from $306,500 a year earlier. In May, the median price was $227,700 and the average was $298,900.
Declining prices have been stopping consumers from buying homes as they wait for still-lower prices.
In a promising sign, inventories kept receding, down to an estimated 426,000 homes for sale at the end of June from May's 450,000. The ratio of new houses for sale to houses sold slid in June to 10.0 from 10.4 in May. Originally, the government estimated the May ratio at 10.9. Bloated inventories are depressing prices and construction.
Regionally last month, new-home sales decreased 0.9% in the West and 2.0% in the South. The Northeast climbed 5.3% and the Midwest rose 2.5%.
An estimated 49,000 homes were actually sold in June, down from 51,000 in May, based on figures not seasonally adjusted.
-By Jeff Bater, Dow Jones Newswires, (202) 862-9249; jeff.bater@dowjones.com
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