New Home Sales Rebound in June as Affordability Concerns Persist

Window & Door
July 26, 2019
Markets

Sales of newly built, single-family homes increased 7 percent to a seasonally adjusted annual rate of 646,000 units in June from a downwardly revised reading in May, according to data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. On a year-to-date basis, new home sales for 2019 are 2.2 percent higher than the same period in 2018.

"Though there is a clear demand for new homes, builders continue to wrestle with affordability headwinds, including shortages of buildable lots and skilled labor, that are constraining sales," says Greg Ugalde, chairman of the National Association of Home Builders.

"The June figures are in line with our forecast predicting a modest 3.5 percent growth in new home sales for 2019, due largely to affordability concerns," says Danushka Nanayakkara-Skillington, assistant vice president for forecasting and analysis at NAHB.

The inventory of new homes for sale was 338,000 in June, representing a 6.3 months' supply. The median sales price was $310,400, nearly identical to the $310,500 median price from a year earlier.