New US residential sales drop in June

July 31st, 2012

Single-family home sales declined in June.

The U.S. Department of Housing and Urban Development reported that new single-family home sales dropped significantly in June.

Overall sales during the month dropped to a rate of 350,000, which was 8.4 percent lower than May's rate of 382,000, the report explained. Despite the drop, it was still more than 15 percent higher than the same point in 2011, which had a rate of 304,000.

The median sales price for newly built homes sold during June was $232,600, according to the report. In addition, the number of new homes for sale at the end of the month was approximately 144,000, which was an inventory supply of only 4.9 months.

"A dearth of construction has led to a very significant inventory shortage," Carl Riccadonna, a senior U.S. economist at Deutsche Bank Securities, told Bloomberg. "If you want to buy a newly built home, good luck finding one."

Despite the negativity surrounding the residential sales report, transferees and their companies could benefit from speaking with a mortgage consultant when looking for a new property, as these professionals can provide significant assistance during the homebuying process.