New Home Sales Rose off Downwardly-Revised June
Sales of new homes rose 2.4 percent in June to an annual pace of 515K sales. The increase however, is off a large downward revision (27,000 units) to the June reading, which now marks the lowest point in this cycle. While the sales picture was worse than expected, continued improvements in inventories give hope for a bottom within a year.
Sales Improve Modestly
- Sales activity continues to struggle, despite a one month increase. While June could prove to be a bottom in sales, it will be difficult to definitively call before we move through the volatile winter selling months.
- Sales activity actually improved in the hard hit Western region, as builders attempted to work off new supply.
Inventory Improvement Continues
- Inventories continued to improve at a stellar clip, off another 23K units in July, bringing the three month decline to almost 50K units. While we need to drop another 110K units before we are willing to call the supply levels normal, progress certainly is being made. The high percentage of new homes completed in inventory will continue to pressure builders.
Wachovia Corporation
http://www.wachovia.com
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