July 27, 2010
 
CENSUS BUREAU/HUD: June New Home Sales Up 23.6% Over May Rate, But Down 16.7% from June 2009 Rate
 
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
 
Sales of new single-family houses in June 2010 were at a seasonally adjusted annual rate of 330,000, 23.6 percent above the revised May rate of 267,000, but 16.7 percent below the June 2009 estimate of 396,000, according to estimates released jointly on Monday, July 26 by the U.S. Census Bureau and the Department of Housing and Urban Development.
 
“Today’s numbers are an encouraging sign that new-home sales are coming back from an expected slow period that followed the expiration of the home buyer tax credit program,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “While we still have quite a way to go on the path to recovery, it’s good to see that we are headed in the right direction.”
 
“It’s worth noting that some of the new-home sales in June were due to move-up buyers who were able to sell their previous home to a tax-credit-eligible buyer while that program was active,” said NAHB Chief Economist David Crowe. “Also, while sales activity is still far from robust, it has picked up some momentum as positive factors such as historic low mortgage rates, great selection and attractive prices help draw potential home buyers back to the market. We anticipate that this momentum will continue along with a gradually improving economy, although other factors such as a critical lack of production financing remain a drag on housing’s recovery.”
 
The median sales price of new houses sold in June 2010 was $213,400; the average sales price was $242,900. The seasonally adjusted estimate of new houses for sale at the end of June was 210,000, an inventory of 7.6 months at the current sales rate.