Sales of new single‐family homes in June were at a seasonally adjusted annual rate of 676,000, according to estimates released by the Census Bureau and the Department of Housing and Urban Development. This is 6.6% below the revised May rate of 724,000 and 19.4% below the June 2020 estimate of 839,000.
“While June sales were considerably lower than our most recent monthly forecast, following the earlier reported June decline in housing starts, the drop-off in sales was not surprising,” says Doug Duncan, chief economist at Fannie Mae. “Some of the slowing in the sales pace likely reflects a move toward normalization in home buying demand following the pandemic-related surge.”
The median sales price of new houses sold in June was $361,800, while the average sales price was $428,700.
The seasonally adjusted estimate of new homes for sale was 353,000 at the end of June, representing a 6.3-month supply at the current sales rate.
“Still, today’s report also provides ample evidence of ongoing supply constraints continuing to hold back potential sales,” continues Duncan. “While today’s release will likely result in a downward revision to our near-term sales outlook, new-home sales are still expected to rebound somewhat as the recent pullback in lumber prices and likely loosening of the labor market leads to more home construction.”
