New Home Sales Rate In The Midwest Decreases In June But Up From Year Ago

New homes sold in the Midwest region of the U.S. in June were at a seasonally-adjusted, annual rate of 71,000 homes, according to a report just released by the U.S. Department of Commerce and United States Census Bureau.  June’s new home sales activity in the Midwest represents a 13.4% decline from May when new homes in the Midwest sold at an annual rate of 82,000 homes but is a 7.6% increase from June 2017 when the annual rate was 66,000 homes.  Last year the rate of new home sales in this region increased every month after June up until December when it crashed but closed out the year with 72,000 new homes sold.

In terms of the actual number of new homes sold this year in the Midwest region, there have been 44,000 new homes sold this year thus far, through the end of June.  Last year, for the same time period, there were just 38,000 new homes sold in this region year to date so we are up 14.4% in non-seasonally adjusted, actual year to date new home sales in the Midwest through the end of June.

  

U.S. New Home Sales – 2013-2018 – Chart

U.S. New Home Sales - 2013-2018 - Chart

 

New home sales in Midwest increase a whopping 43.1% in June

Dennis Norman

Dennis Norman

This morning the U.S. Department of Commerce released a report showing the sale of New Homes in June were at a seasonally adjusted annual rate of 384,000, an 11% increase across the US from May.

However, here in the Midwest the numbers were significantly better showing a seasonally adjusted annual rate of 73,000 new homes sales in June, a 43.1% increase over Mays rate of 51,000 homes.  In addition, the Midwest was the only of region of the four in the U.S. that showed an increase in sales from the year prior.  In the Midwest, June’s rate is 5.8% better than June, 2008’s rate of 69,000 home sales.  The US market as a whole was down 21.3% from a year ago.

Median prices for new homes in the U.S. decreased from $221,600 in May to $206,200 for June. Homes in the $150,000 – $299,999 range continue to dominate sales with 56% of the sales for June falling in this price range.  The Commerce Department does not publish median home prices or inventories for the regions so we can’t look at the Midwest alone.

house-construction

Perhaps the best news in the report is on the inventory of new homes. Inventory declined again to 281,000 homes which represents an 8.8 month supply based upon current sales rate. This is the lowest inventory we have seen in a long time and is a very positive sign to me. Continue reading “New home sales in Midwest increase a whopping 43.1% in June