WASHINGTON (7/25/14)--Sales of new single-family homes fell 8.1% in June to 406,000 annualized units, according to numbers released by the Commerce Department Thursday.
Sales are down 11.5% year-over-year, and the weak month means a second straight quarter of decline for new homes after an abysmal first quarter (
The Census Bureau also revised new-home sales in May substantially lower than the 504,000 annualized units that were initially reported by 12%, further undercutting the second-quarter's new-home sales performance.
"The June new-home report is unexpectedly weak," said Celia Chen, Moody's analyst (
). "Sales are down again in the second quarter and slack is creeping back into the market."
All U.S. regions witnessed a drop in sales in June, with the Northeast and South experiencing the steepest declines.
Meanwhile, inventory outpaced demand, as the number of new homes for sale climbed 3% in June. Median prices for new homes fell $3,100 as well, but prices still sit 5.3% higher than prices in June 2013.