WASHINGTON - The pace of new single-family home sales accelerated to a 592,000 seasonally adjusted annual rate in June, well the 551,000 rate expected and the strongest pace since February 2008, data released by the Commerce Department Tuesday showed.
New home sales in May was revised up to 572,000 from the previously reported 551,000 rate, while April sales were revised down to a 572,000 level from the previously reported 586,000 level. Taken together, the second quarter average now stands at 579,000, up from 529,000 in the previous quarter.
The June gain was led by a 10.9% jump in the West region and a 10.4% rise in the Midwest region. These were offset small a 5.6% decline in the Northeast and a 0.3% decline in the large South region.
On an unadjusted basis, June sales were unchanged from May, but were up 22.7% from a year ago.
The supply of new homes for sale rose by 1.2% to 244,000 in June. This gain was not enough to prevent as slip in the months supply as sales surged. The June supply dropped to 4.9 months from 5.1 months, and now stands the lowest since February 2015.
The median sales price of new homes rose by 6.2% to $306,700 in June after a large May dip. The median price was up 6.1% from June 2015.
Overall, the data suggest new home sales remain very strong despite rising prices. This should continue to support home building going forward.
In June, existing home sales rose by 1.1% to a 5.570 million seasonally adjusted annual rate, the National Association of Realtors said last week. The NAR has said that an increase in new home supply, and thus new home sales, is a key factor in lifting the shockingly low supply of existing homes on the market.
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