Sales of newly built homes were sluggish in June, with contracts at a seasonally adjusted annual rate of 627,000, marking an annual decline of 6.6%. The median sales price fell to $401,800, down 4.9% from May. Inventory rose to 511,000 homes, representing 9.8 months of supply. Sales decreased in the Northeast and West but increased in the Midwest and South. Affordability challenges from high mortgage rates deterred many buyers, despite the larger selection of homes and decreasing prices.
These falling prices reflect the recent trends of builders delivering smaller and more affordable homes to the market, but also the harsh reality that demand for homes is waning as more buyers simply decide that they cannot afford a new home purchase under current market conditions.
The number of homes for sale is at its highest level in the past year at the same time that the number of sales is at its lowest with the exception of last month.
Though the number of options for buyers is up and prices are down, buyers and builders are still struggling to make a deal.
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