US New Home Sales Rise in June, Prices Fall
$DIA, $SPY, $QQQ, $VXX
Sales of new homes rose slightly in June, hitting their highest level in 3 months, as demand for housing remained stiff, according to government data released Wednesday.
But prices retreated from an all-time high and supplies rose, suggesting new construction could be offering some relief to what has been an exceedingly tight market, according to the US Commerce Department report.
Sales of new homes rose 0.8% for the month to an annual rate of 610,000, seasonally adjusted, marking the second straight increase and matching analyst expectations.
That put home sales last month 9.1% higher than June of last year.
The median price retreated from May’s all-time record, falling 4.2% to $310,800. The sales pace put the supply of available homes at 5.4 months, up slight from 5.3 months in May.
The stock of homes for sale rose to its highest level in eight years at an estimated 272,000, the report said.
Sales jumped in the western and mid-western United States, with sales of single-family homes in those regions rising by 10 and 12.5%, respectively. But activity was flat in the Northeast and fell more than six percent in the South.
In contrast to this report, industry numbers released this week showed sales of existing homes fell last month, and realtors blamed a shortage of available homes and the tight market, which is pushing prices higher.
7 years of uninterrupted job creation and steady economic recovery, with a new generation of millennials ready to enter the housing market, has created strong demand, potentially pricing some would-be home owners out of the market.
In addition, analysts say a tight labor market, local regulations and other barriers have held down construction, making the shortage more acute.
Notably, Americans are pouring record amounts of money into home improvements this year as a shortage of new single-family homes across the US pushes up prices and keeps many buyers out of the market.
Spending on renovations is forecast to grow 6.8% from a year earlier to $316-B in Y 2017, a study from Harvard University’s Joint Center for Housing Studies revealed Wednesday.
Wednesday, the US major stock market indexes finished at: DJIA +97.58 at 21711.01, NAS Comp +10.57 at 6422.71, S&P 500 +0.70 at 2477.79 posting fresh record closing highs.
Volume: Trade on the NYSE came in at: 826-M/shares exchanged hands
- NAS Comp +19.3% YTD
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