New home sales unexpectedly fell in June to the lowest level since April 2020 as buyers grapple with near record high prices.
Sales of new single-family homes last month fell 6.6% to a seasonally adjusted annual rate of 676,000, according to the US Census Bureau and the Department of Housing and Urban Development. The rate was 19.4% lower than the June 2020 estimate of 839,000.
Analysts polled by Refinitiv had expected an increase to 800,000. Last month’s reading was revised down from 45,000 to 724,000.
New home sales, which represent around 10% of the housing market, fell every month in 2021.
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Homebuyers have faced record prices in recent months as soaring input costs, including lumber, have made construction more expensive. Low inventories also helped support prices. Median selling prices last month fell to $ 361,800, down from a record high of $ 380,700 in May. The average sale price fell to $ 428,700, the lowest since March.
The drop in sales came as new home inventory hit 353,000, a 6.3-month supply, the highest since at least May 2020.