Sales of new single‐family houses dropped slightly in June, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development.
The seasonally adjusted annual rate came in at 697,000, or 2.5% below the revised May rate of 715,000 but 23.8% above the June 2022 estimate of 563,000.
“New-home sales staying elevated from levels seen a year ago is welcomed news for home builders and is boosting their confidence in the market,” says Zillow senior economist Nicole Bachaud. “With inventory of existing homes dwindling, many home shoppers are turning up empty-handed. Those buyers who turn to the new-construction market are seeing more available options to snatch up, leading to strong new-home sales compared to a year ago.”
The median sales price of new homes sold in June was $415,400, while the average sales price was $494,700.
The seasonally adjusted estimate of new houses for sale was 432,000 at the end of June, representing a 7.4-month supply at the current sales rate.
“Both supply and demand are down for housing given higher interest rates,” says Zonda chief economist Ali Wolf. “Today’s housing market is all about finding the right buyer for the right home at the right price, and that’s a challenge. Compared to the resale market, though, new-home builders are doing a better job working with consumers and are gaining market share.”