U.S. new home sales hit 14-month low in June
The United States saw its sales in single-family homes decline in June, touching a 14-month low. Meanwhile the preceding month’s sale was also lower than expected. This was owed mainly to a surge in property prices caused by expensive building materials.
Data from the Commerce Department showed a 6.6% drop in new home sales to a seasonally adjusted annual rate of 676,000 units in June, the lowest level since April 2020. Initially reported sales of 769,000 units in May were lowered to 724,000 units, reflecting sales contraction in three straight months.
Housing demand has increased in the U.S. after millions of Americans were forced to stay at home. However, supply failed to keep up due to some constraints, including expensive lumber, shortages of other building materials, household appliances, land, and labor.
Chief Economist David Berson of Nationwide in Columbus, Ohio said sales increase is unlikely if builder costs and supply-chain problems will not be addressed