By Manuel Gutierrez, Consulting Economist to NKBA

 

The 590,000 unit annual rate is more than 17 percent below the pace of a year ago.

 

  • On a year-to-date basis, a total of 371,000 new houses have been sold in the first six months this year, 13.7 percent lower than the same period last year, and the first year-to-date sales decline since 2014.
  •  The sales shortfall was accompanied by a notable drop in median home prices, off by 9.5 percent to $402,000 vs. the previous month.
  •  Three of the four U.S. regions saw a drop in June new home sales, led by a 37 percent plunge in the West.
  •  The South, which traditionally accounts for nearly half the new homes built was off a modest 2 percent, while the Midwest was the only region registering a gain.
  •  Nearly one third of new home sales in June were for homes whose construction had not yet started, well above the 22 percent average earlier in the year, with labor shortages a major factor.