June New Home Sales Take Surprise Dip
June's new home sales dip - falling 6.8 percent - defied predictions, writes Emily Peiffer on ConstructionDIVE.com. Economists polled by Bloomberg estimated the June number would be a very slight increase of 0.3 percent.
The seasonally adjusted annual rate now puts new home sales at 482,000, according to the data. Though the lowest in seven months, it's 18.1% higher than June 2014. You can find Peiffer's synopsis here.
The June dip follows may's 2.2 percent increase and dampens some of the optimism that continues to come from some economists. One issue may be the tight housing inventory and the price of affordable starter homes for new-home buyers.
Robert Denk, assistant vp for forecasting and analysis at the NAHB, referred to the data as a "bumpy ride up."
New home inventory move up 3.4 percent, to 215 thousand, he notes. And, despite June's soft numbers, new home sales have been trending up since 2012. They expect the upward trend to continue through this year and into next, boosted by job gains and other signs that "point to continuing recover in the housing sector."
A shortage of lots and skilled construction labor continue to be tagged as culprits in the recovery.
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