Sales of newly built single-family homes did rise 0.6 percent in June, to a seasonally adjusted annual rate of 627,000, according to newly released data from the US Department of Housing and Urban Development and the US Census Bureau.
However, the past two months have been the slowest sales pace since October 2024, as mortgage rates averaged above 6.8 percent in June.
“New home sales remained flat last month, highlighting persistent weakness in the housing market despite seasonal expectations for growth,” said Buddy Hughes, chairman of the NAHB. “Elevated mortgage rates and sustained price levels continue to limit purchasing power, particularly among first-time and middle-income buyers.”
A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed.
In addition to adjusting for seasonal effects, the June reading of 627,000 units is the number of homes that would sell if this pace continued for the next 12 months.
New single-family home inventory continued to rise with 511,000 residences marketed for sale as of June. This is 1.2 percent higher than the previous month and 8.5 percent higher than a year ago.
At the current sales pace, the months’ supply for new homes remained elevated at 9.8 compared to 8.4 a year ago. Completed, ready-to-occupy inventory stood at 114,000 homes in June, up 21.3 percent from a year ago.
Regionally, on a year-to-date basis, new home sales are down in all four regions, falling 25.6 percent in the Northeast, 8.5 percent in the Midwest, 1.6 percent in the South and 4 percent in the West.
