Sales of New Homes Dip in June

Sales of new homes edged down 0.1% in June, the government reported Tuesday. The decline surprised many analysts, who had been expecting an increase in sales because of falling interest rates.

New single-family homes were sold at an annual rate of 669,000 units last month following a revised 5.7% May increase, according to a report by the departments of Commerce and Housing and Urban Development.

The decline still left sales 5.2% above where they were a year ago, but economists were surprised that sales did not advance in June, given the interest-rate declines that have left mortgage rates at their lowest levels in five years.

The South, where almost half of the new homes have been built in recent years, was the only region posting an increase in June.

The price of a new home rose in June, with the median price climbing by 6.9% to $85,300. The median price means that half of the homes sold for more and half for less.

Jack Carlson, chief economist for the National Assn. of Realtors, said the median sales price was 6% higher than a year ago, about in line with his forecast of a 5.7% rise in new-home prices this year.

The average price of a home was also up but by a smaller 1%, rising to $99,200 last month. It was $98,800 a year ago.