New Home Sales Fall Back in June

Filed in Home Building by on July 25, 2018 3 Comments
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Contractor Kim Kacprowicz and her husband Rob were Platinum winners for their custom McQueeney, Texas home in the 2017 BALA awards. Photo: Dror Baldinger Photography.

Sales of newly built, single-family homes fell 5.3%  in June to a seasonally adjusted annual rate of 631,000 units after a downwardly revised May report, according to newly released data from HUD and the Census Bureau.

“Uncertainty caused by tariffs and the talk of trade wars are making home buyers more cautious, and builders are taking note of this situation,” said NAHB chair Randy Noel. “Not only are consumers and builders concerned about the current lumber tariffs, but also the next round of proposed tariffs on a number of goods and services.”

“Though this is the lowest monthly annualized sales pace since October 2017, new home sales for the first half of 2018 are up 6.9% on a year-to-date basis compared to last year,” said NAHB Chief Economist Robert Dietz. “This indicates solid demand for new home construction.”

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed.

In addition to adjusting for seasonal effects, the June reading of 631,000 units is the number of homes that would sell if this pace continued for the next 12 months.

The inventory of new homes for sale was 301,000 in June, which is a 5.7-month supply at the current sales pace. The median sales price was $302,100.

Regionally, new home sales rose 36.8% in the Northeast. Sales fell 13.4% in the Midwest, 7.7% in the South and 5.2% in the West.

For more details, see Dietz’s Eye on Housing blog post.

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Comments (3)

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  1. Chris Jones says:

    Which states are included in the Northeast?

  2. Daniel Schifko says:

    “Uncertainty caused by tariffs and the talk of trade wars are making home buyers more cautious, and builders are taking note of this situation,” said NAHB chair Randy Noel.

    Or it could be that the normal summer slow down showed up and tariffs that will ultimately help the American economy had nothing to do with it. Sales are UP 6.9% over the first half of last year. If the NAHB wants to take a political stand I believe it should be for a strong American economy, not a global market that drags down the earnings of the middle class buyers that I need to buy my houses.

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