SALES of new homes in the US rebounded in June from the previous month’s record low, providing a rare ray of light in an otherwise gloomy housing market. They jumped by 23.6 per cent last month to an annual rate of 330,000 units from a downwardly revised 267,000 units in May. The June rise was the largest percentage increase since May 1980 and partially offset May’s historic 36.7 per cent fall.
Analysts had expected sales to climb to 320,000. Capital Economics’ Paul Dales said: “New home sales were always going to rebound from May’s record low, which came in the aftermath of the expiry of the homebuyer tax credit in April.”
“What’s more, with a record low of 210,000 new homes currently up for sale, the supply of unsold new homes fell from 9.6 in May to 7.6. Progress is therefore being made in reducing the excess inventory, which is crucial for the outlook for prices,” Dales added.
Societe Generale’s Aneta Markowska said: “We would characterise the housing environment as still soft, but stabilising. Despite recent demand weakness, inventories of new homes continue to contract, which argues against another down leg in home prices.”