New Home Sales Grow. It's All Relative

June New Home Sales. i i

hide captionNew home sales were up by 384,000 in June. Click to enlarge.

(Calculated Risk)
June New Home Sales.

New home sales were up by 384,000 in June. Click to enlarge.

(Calculated Risk)

The U.S. Census Bureau reports that sales of new homes grew by 384,000, up 11 percent from last month. The median price fell to $206,200, from $221,600 in May. Calculated Risk notes that these are the strongest sales figures since November 2008, the depths of the economics crisis — and that this is the second lowest total for June sales since the Census Bureau started tracking them in 1963.

The U.S. still has 8.8 months' worth of inventory, meaning that's how long it'll take the real estate market to buy the homes now on offer. Hey, it's down from the record of 12.4 months in January. Calculated Risk writes:

"Months-of-supply for inventory has peaked, and there is some chance that sales of new homes has bottomed for this cycle — but we won't know for many months. However any recovery in sales will likely be modest because of the huge overhang of existing homes for sale."

The Census Bureau figures focus on single-family homes. If you're living in an area with a lot of condominiums, you can expect that "overhang" to be much worse.

Bonus: Calculated Risk on the gap between new and existing home sales.

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