Sales of newly built, single-family homes declined 1% to a seasonally adjusted annual rate of 312,000 units in June, according to US Commerce Department figures.
Bob Nielsen, chairman of the National Association of Home Builders (NAHB), said the report shows that new-home sales remain in a “holding pattern at relatively low levels”.
“This reflects what we are hearing from builders in the field, who continue to see uncertainty in the marketplace and are reacting accordingly by keeping inventories at a record low.
“With inventories at razor-thin margins, any uptick in demand will generate increased building activity in the months ahead.”
NAHB senior economist Robert Denk said June’s sales illustrated how the fledgling housing and economic recovery went hand-in-hand.
“Improving confidence in the broader economic recovery – in particular, solid job growth – will bring buyers back into the housing market,” he said.
Meanwhile, the inventory of new homes for sale continued a downward trend in June, falling 1% to 164,000 units. This marks the lowest inventory number on record and represents a 6.3-month supply at the current sales pace.
