New Home Sales: Worst June Ever

New Home Sales in June were at a seasonally-adjusted rate of 330 thousand. This is the lowest number ever recorded in June.

The Census Bureau reports: NEW RESIDENTIAL SALES IN JUNE 2010

Sales of new single-family houses in June 2010 were at a seasonally adjusted annual rate of 330,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 23.6 percent (±15.3%) above the revised May rate of 267,000, but is 16.7 percent (±10.9%) below the June  2009 estimate of 396,000.

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. This represents a supply of 7.6 months at the current sales rate.

Ignore the Spin

This story is being reported as a positive report, and even a number that might signal an end to the collapse in new home sales. Why? Because it’s better than May, which was the worst month ever on record.

Consider this Bloomberg headline just minutes after the report was released:

June Sales of U.S. New Homes Climb More Than Forecast

July 26 (Bloomberg) — Sales of U.S. new homes rose in June more than forecast following an unprecedented collapse the prior month, a signal the worst of the slump triggered by the end of a government tax credit is over.

The 23.6% increase was due to the fact that May’s already-horrible new home sales were revised dramatically downwards this month, from a pace of 300,000 to just 267,000.  Compared to that, 330K looks good.

But, the facts are that this is still a terribly-low number and if this report follows the recent revision trend, the number will probably be revised even lower next month.

Here’s an updated graph from Calculated Risk: