New Home Sales, which measure signed contracts on new homes, fell 0.6% from May to June, marking the second straight monthly decline and the lowest level since November. Signed contracts were also 7.4% lower than they were in June of last year, with the Northeast seeing a nearly 64% annual decline.
What’s the bottom line? Despite the pullback in sales, buyers are still turning to the new construction market, given the ongoing shortage of existing homes for sale. However, more “available” supply (i.e. completed homes ready for buyers to move into) is needed to meet buyer demand. Of the 476,000 new homes available for sale at the end of June, only 102,000 were completed, with the rest either under construction or not even started yet.