by Calculated Risk on 7/26/2007 10:00:00 AM

According to the Census Bureau report, New Home Sales in June were at a seasonally adjusted annual rate of 834 thousand. Sales for May were revised down significantly to 893 thousand, from 930 thousand. Numbers for April were also revised down.


Click on Graph for larger image.
Sales of new one-family houses in June 2007 were at a seasonally adjusted annual rate of 834,000 ... This is 6.6 percent below the revised May rate of 893,000 and is 22.3 percent below the June 2006 estimate of 1,073,000..


The Not Seasonally Adjusted monthly rate was 77,000 New Homes sold. There were 98,000 New Homes sold in June 2006.

June '07 sales were the lowest June since 2000 (71,000).


The median and average sales prices were mixed. Caution should be used when analyzing monthly price changes since prices are heavily revised and do not include builder incentives.

The median sales price of new houses sold in June 2007 was $237,900; the average sales price was $316,200.


The seasonally adjusted estimate of new houses for sale at the end of June was 537,000.

The 537,000 units of inventory is slightly below the levels of the last year. Inventory for the previous months were revised up slightly.

Inventory numbers from the Census Bureau do not include cancellations - and cancellations are once again at record levels. Actual New Home inventories are probably much higher than reported - some estimate are about 20% higher.


This represents a supply of 7.8 months at the current sales rate.

It appears we are back to were sales are being revised down every month. As I noted last month, this probably indicates another downturn in the market. More later today on New Home Sales.