Jul
27

U.S. New-Home Sales Fall, But Not in the Midwest

July 27, 2011

The sale of new U.S. homes fell unexpectedly last month, though not every region saw a drop.

According to the Commerce Department, new-home sales fell 1.0 percent in June to a seasonally adjusted annual rate of 312,000. This marks the second consecutive monthly drop and a new three-month low.

Arrows Up and DownEconomists had expected sales to rise 1.2 percent last month to an annual rate of 323,000.

The bright side: The rate is 1.6 percent above the June 2010 estimate of 307,000.

The reality: A healthy level is considered to be an annual rate of about 750,000.

Some regions of the country were hit much harder than others.

The reality: The Northeast fell 16 percent to an new all-time low, and the West dropped 13 percent.

The bright side: New-home purchases jumped 9.5 percent in our Midwest region, and the South saw a rise of 3.4 percent.

Even though overall new-home sales fell for June, home prices went the other way.

The median price for a new home sold last month was $235,200. That’s a 5.8 percent increase from May and a 7.2 percent hike from the $219,500 price posted in June 2010.

Pretty good price news all around.

The overall bright side: While the rate of U.S. new-home sales in June was disappointing, our region of the country actually did quite well.

The reality: Expect these up-and-down trends to continue as the U.S. and Chicago real estate markets struggle to get back to healthier times.

Categories: Economy

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Tracey

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