WASHINGTON (7/25/14)--Sales of new single-family homes fell 8.1% in June to 406,000 annualized units, according to numbers released by the Commerce Department Thursday.
Sales are down 11.5% year-over-year, and the weak month means a second straight quarter of decline for new homes after an abysmal first quarter (Economy.com July 24).
The Census Bureau also revised new-home sales in May substantially lower than the 504,000 annualized units that were initially reported by 12%, further undercutting the second-quarter's new-home sales performance.
"The June new-home report is unexpectedly weak," said Celia Chen, Moody's analyst (Economy.com). "Sales are down again in the second quarter and slack is creeping back into the market."
All U.S. regions witnessed a drop in sales in June, with the Northeast and South experiencing the steepest declines.
Meanwhile, inventory outpaced demand, as the number of new homes for sale climbed 3% in June. Median prices for new homes fell $3,100 as well, but prices still sit 5.3% higher than prices in June 2013.