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

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.