Home Sales Dip Over Eight Percent For Month of June

Sales of newly built, single-family homes fell 8.1 percent to a seasonally adjusted annual rate of 406,000 units in June, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales numbers for May were revised downward to 442,000. "The numbers are a little disappointing, but May was unusually high and some pull back isn't completely unexpected," said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. "Our surveys show that builders are confident about the future and we are still seeing a gradual upward trajectory in housing demand." "With continued job creation and economic growth, we are cautiously optimistic about the home building industry in the second half of 2014," said NAHB Chief Economist David Crowe. "The increase in existing home sales also bodes well for builders, as it is a signal that trade-up buyers can move up to new construction." Regionally, new-home sales were down across the board. Sales fell 20 percent in the Northeast, 9.5 percent in the South, 8.2 percent in the Midwest and 1.9 percent in the West. The inventory of new homes for sale held steady at 197,000 units in June. This is a 5.8-month supply at the current sales pace.