Sales of new homes are up over May, but ...

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New-home sales were up 11% over May, and initial news reports were playing this up as ‘the largest month-to-month gain in eight years.’

But let’s keep this in context. The June new-home sales total was down 21% from a year ago. Last year had been the worst year for new-home sales since 1982. At the current pace, this year’s new-home sales are on track to be the worst since the Census Bureau began tracking the totals in 1963.

The May-to-June gain was pushed by low prices as builders moved to clear their backlogs, plus various tax credits. That brought sales up to match the level of June 1982. The Times report is here. The full Census Bureau release is here.

-- Peter Y. Hong