New Home Sales Drop Against May, Year-On-Year
New single-family home sales dropped to a seasonally-adjusted rate of 406,000, report the Census Bureau and HUD. That's an 8.1% drop against May, 11.5% against June 2013. Making matters much worse . . .
writes Trey Garrison in HousingWire, May’s annual rate was revised downward from 504,000 in May to 442,000, a huge downward revision that came after the original incorrect 19% surge was celebrated in the mainstream headlines as a sign of the housing recovery picking up. There was also a downward revision to March's numbers, from 410,000 to 408,000, and in April's numbers, from 425,000 to 408,000, he notes. Find his article here.
The NAHB said the numbers are "a little disappointing, but May was unusually high and some pull back isn’t completely unexpected,” quoting Kevin Kelly, chairman of the National Association of Home Builders and a home builder and developer from Wilmington, Del. Find their brief news release here.
The association's builder confidence survey rose 4 points this month, to 53, suggesting more builders saw good sales conditions rather than poor. “With continued job creation and economic growth, we are cautiously optimistic about the home building industry in the second half of 2014,” said NAHB Chief Economist David Crowe.
So far, though, numbers for this year have been trending lower, failing to show the bounce some expected after the long winter. Not that contractors or those who servce contractors needs a reminder, but for comparison sakes, annual new home sales were pushing 1.4 million in July 2005 before the bubble burst.
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