U.S. new-home sales slide in June by 6.8 percent
However, housing advocates said the market remains strong and would rebound by year's end.
“Despite this month’s drop, we continue to hear from our builders that there is solid traffic in sales offices and a lot of consumer interest in new homes, which should bode well for sales moving forward,” Tom Woods, chairman of the National Association of Home Builders, said.
Regionally, home sales rose by 28 percent in the Northeast. The Midwest, South and West posted declines of 11.1 percent, 4.1 percent and 17.0 percent, respectively.
The inventory of new homes for sale was 215,000 units in June. This is a 5.4-month supply at the current sales pace.
Economists said they are confident the housing market will improve.
“We knew that there would be ups and downs on the road back to a normal housing market,” Robert Denk, an economist with the National Association of Home Builders, said. “As the economy and job growth strengthen, we expect to see gradual, continued momentum in the coming months.”