US new-home sales hit June slump

According to data from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single family houses in June 2015 were recorded at a seasonally adjusted annualized rate of 482,000 units. Purchases of new homes climbed in May to an annual rate of 546,000, the strongest pace since February 2008, when the U.S. housing bubble burst.

That level is below the revised rate of 517,000 (annual, seasonally-adjusted) in May, but above the June 2014 estimate of 408,000.

The decline in June sales – following a 2.2% bump in May – puts a slight damper on recent optimism sparked by the NAR’s Wednesday announcement of a 3.2% rise in June existing home sales and the NAHB’s recent report of homebuilder optimism at a 10-year high. Steps by the government to ease lending conditions for first-time buyers through mortgage finance firms Fannie Mae and Freddie Mac also are helping.

New home sales increased 28 percent in the Northeast after soaring 78.6 percent in May. In the South, sales slipped 4.1 percent.

The stock of new houses for sale increased 3.4 per cent to 215,000 last month, the highest since May 2010.

Supplies remain remarkably tight with few new listings coming onto the market and construction expanding at a slower pace than sales of new homes.

Ian Lyngen of CRT Capital notes that the median price ticked up to $281,800 from $280,500 in May.

There are other reports that the housing sector carried its previous momentum through June.

It is the lowest level since last November.