New Home Sales data came out today showing a drop in June sales with only 406,000, or 8.1 percent below the revised May rate of 442,000 and 11.5 percent below the June 2013 estimate of 459,000.
While the news is certainly not good, it's helpful to try to keep the sales data in perspective. The graphic below shows that year-to-date new home sales are about 10,000 (NSA) below the 2013 level but remain significantly above the levels we saw from 2009-2012. Right now we're averaging over 37,000 new home sales through the first six months of the year. We do expect to see a pick-up in the second half of the year as the economy continues to improve, with mortgage rates staying near 2014 lows (for now) and as the labor markets continue to heal.
But as we mentioned in the latest release of MiMi, the housing recovery continues to slog forward, with some markets improving but most remaining flat. This latest reading on new home sales is yet another sign of this slog.
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