Sales of new, single-family homes dropped 1 percent last month to a seasonally adjusted 312,000 units, the U.S Commerce Department said Tuesday.
National Association of Home Builders Chairman Bob
Nielsen, a home builder from Reno, Nev., said the figures were not unexpected.
"Today's report shows that new-home sales remain in
a holding pattern at relatively low levels," Nielsen said. "This reflects what we are hearing from
builders in the field, who continue to see uncertainty in the marketplace and
are reacting accordingly by keeping inventories at a record low. With inventories at razor-thin margins, any
uptick in demand will generate increased building activity in the months
A stronger economy will lead to stronger home sales, said
NAHB senior economist Robert Denk.
"June's sales numbers illustrate how the fledgling
housing and economic recovery go hand-in-hand," Denk said. "Improving confidence in the broader
economic recovery - in particular, solid job growth - will bring buyers back
into the housing market. But as policymakers debate major changes to the
housing finance system, higher down-payment requirements, reducing conforming
loan limits and whether to tamper with the mortgage interest deduction, this
only fuels consumer uncertainty and keeps the housing market recovery from
gaining any real momentum."
Home sales stay level
July 27, 2011