After a down month in May, the sales of newly-built homes appears back on track.
As published by the Census Bureau, June’s New Home Sales report showed:
- A 24 percent sales volume increase from the month prior
- A 2-month drop in the supply of newly-built home
There are now just 210,000 new homes for sale nationwide.
June’s data is a major improvement over May, but it’s possible that the true “new home market” may be softer than the statistics suggest. This is for several reasons.
First, we’re comparing June’s sales data to the worst month in New Home Sales history.
In May, sales of new homes totaled just 267,000 units nationwide. That’s one-quarter fewer sales than in the previous worst month in New Home Sales history. May’s sales levels were awful by any measure but June’s improvement to 330,000 units remains second-worst sales levels ever posted.
Second, although much improved, June’s new home supply of 7.6 months is elevated versus the historical norm near 6.0 months. The last year has averaged 7.7 months.
For buyers of new homes in St Pete , this combination of low sales volume and higher-than-normal inventory may be a positive. It’s the main reason why homebuilder confidence is reeling and the downturn has opened some doors for big discounts and deals. Free upgrades and closing cost credits can make a well-priced home even more attractive.
Plus, with mortgage rates at all-time lows and expected to rise, home affordability is may never be better.
Related posts:
- New Homes Sales Were Strong in March, But Not As Strong As The News Would Have You Believe The sales of newly-built homes soared in March. Even more...
- Existing Home Sales Plummet In July; Home Buyers Gain Leverage The number of home resales plunged by 1.4 million units...
- New Home Sales Drop In July — Just Like Existing Home Sales Although new home inventory actually dropped 2,000 units in July,...
- Buyers Take The May 2010 New Home Sales Data All The Way To The Bank The press is referring to the May New Home Sales...
- As The Supply Of New Homes Grows, So Does The Opportunity For A “Good Deal” New Home Sales fell 11 percent from the month prior...
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