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June’s new-home sales surged 7 percent, according to the Commerce Department’s monthly report this week. Accounting for adjustments, however, the increase is less, analysts say.

New-Home Sales: 646,000

  • +7 percent month-over-month
  • +4.5 percent year-over-year

For-Sale Inventory: 338,000
Months’ Supply: 6.3
Median Price: $310,400

What the Industry’s Saying
“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.” – Danushka Nanayakkara-Skillington, AVP for Forecasting and Analysis, National Association of Home Builders

“Despite a positive headline figure, June’s new-home sales are a wake-up call for a sector that enjoyed an otherwise solid start to 2019. Sale counts are still ahead of where they were last year, but each of the three previous month’s releases were revised down, inflating the appearance of June’s monthly gain…Home construction rates have slowed recently and much of the continued growth of new home sales relies on builders putting up smaller, less expensive homes. New home sales have room to grow, but at a gradual pace.” – Matthew Speakman, Economist, Zillow

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