U.S. New-Home Sales Decline to Eight-Month Low as Prices Fall

Housing development in Atlanta, Ga. Photo by Chris Rank/Bloomberg via Getty Images

U.S. purchases of new homes fell in June to the slowest pace in eight months, while the median selling price declined to the lowest in more than a year, adding to signs the housing market is cooling, according to government data Wednesday. Single-family home sales dropped 5.3% m/m to 631k annualized pace (est. 668k) after 666k rate (revised from 689k). Median sales price decreased 4.2% y/y to $302,100. Supply of homes at current sales rate climbed to 5.7 months, the longest since August, from 5.3 months. Demand weakened in three of four U.S. regions, including a 7.7% drop in the South, the largest area. The decline in sales left 301,000 homes available nationwide in June, the most since March 2009.

The decrease in the median price reflected a bigger share of homes sold in the $200,000 to $300,000 range and a smaller share above that level. That suggests demand remains steady at lower price points amid a strong job market and fairly elevated confidence, while buyers may be reluctant to commit to more expensive properties.