Photo: Casey Serin/Flickr
UPDATE:New home sales declined 8.4 per cent sequentially in June, missing expectations and falling to the lowest level since January.
Sales fell to an annual rate of 350,000, according to new data from the U.S. Census Bureau.
Economists polled by Bloomberg had forecast a 0.7 per cent increase, to 372,000 units.
Median home prices also declined during the month, falling roughly $5,000 to $232,600.
Deutsche Bank’s Joe LaVorgna noted that part of the problem stems from the drop in housing starts since the financial crisis began in 2007.
“The lack of building means it is doubtful we can see a sustained rise in home sales even toward the higher end of their range,” he says. “However, based on the National Association of Homebuilders’ housing market index, we expect this situation to change over the next couple of years.”
Regionally, sales were hardest hit in the Northeast and South, declining 60 per cent and 8.6 per cent, respectively. The West and Midwest improved in June.
Below, a look at new home sales over the past decade.
Photo: Eric Platt/Business Insider, Data: Bloomberg
Minutes away from the key data point of the day: New Home Sales.
Economists polled by Bloomberg forecast sales advanced 0.7 per cent in June to an annual pace of 372,000.
If that holds, it would be the highest sales pace in more than two years.
However, it would mark a substantially slower growth rate then recorded in May, when sales jumped 7.6 per cent to 369,000.
The announcement is scheduled at 10:00 a.m.