New data indicates that the housing market slumped in June. Information released by The U.S. Department of Housing and Urban Development and the U.S. Census Bureau reports that sales of recently constructed single family homes fell 6.8 percent in June over May's numbers to a seasonally adjusted annual rate of 482,000.
Though the initial numbers are down, they still show significant improvement over the same amount last year, up by a rate of 74,000, or 18.1 percent.
"Despite this month's drop, we continue to hear from our builders that there is solid traffic in sales offices and a lot of consumer interest in new homes, which should bode well for sales moving forward," said Tom Woods, chairman of the National Association of Home Builders (NAHB) in a statement.
Inventory of new homes for sale was 215,000 units, a roughly 5.4 month supply. As a six month supply is the industry benchmark, this indicates that consumption is higher than anticipated.
The median sales price in June for new home sales was $281,800 and the average was $328,700.
Regionally, only the Northeast showed improvement over May, as sales rose 28 percent in June. The South, Midwest and West each posted declines, dropping 4.1 percent, 11.1 percent and 17 percent, respectively.
NAHB senior economist Robert Denk said that the industry will be able to weather the drop.
"We knew that there would be ups and downs on the road back to a normal housing market," Denk said in a statement. "As the economy and job growth strengthens, we expect to see gradual, continued momentum in the coming months."
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