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New Home Sales Slip In June

New numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show sales of newly built single-family homes fell 6.6 percent in June from the month before. The decline was unexpected. In fact, economists polled before the report’s release forecast a 3 percent increase from May’s number. So what happened? Well, high home prices and the rising cost of building materials may have something to do with it. The median sales price of new homes sold during the month was $361,800. The average price was $428,700. But while high home prices may have made buyers more hesitant in June, there were some encouraging signs in the monthly report. For example, the number of new homes for sale is higher than it’s been in more than a year. That means, home builders have been adding for-sale inventory, which should help moderate future price increases. And it may have already started. The median and average sales price both fell last month, with the median price almost $20,000 lower than it was in May. (source)