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7/24/14, "U.S. new home sales post biggest drop in almost a year," Reuters
"Sales of new U.S.
single-family homes fell sharply in June and the prior month's data was
revised to show less robust growth, suggesting the
housing market would struggle to regain momentum.
The
Commerce Department said on Thursday that sales dropped 8.1 percent,
the largest decline since July 2013, to a seasonally adjusted annual
rate of 406,000 units.
May's sales pace was revised to 442,000 units from the previously reported 504,000 units.
Economists
polled by Reuters had forecast new home sales at a 479,000-unit pace
last month. Compared to June of last year, sales were down 11.5 percent.
A run-up in mortgage
rates, as well as a shortage of properties for sale, pressured home
sales late last year, raising concerns that a weak housing market could undercut economic growth.
Though
housing appears to be on the mend with mortgage rates well off their
September peak and job growth gathering momentum, the sector will
probably continue to lag the overall economy.
Last month, new home sales fell in all four regions, declining by 20 percent in the Northeast.
The
inventory of new houses on the market rose 3.1 percent to 197,000
units, the highest number since October 2010. At June's sales pace it
would take 5.8 months to clear the supply of houses on the market, the
highest since October 2011."
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