Sales of new homes tumble to 14-month low

Sales of new single-family homes fell in June to the lowest level since April 2020, the Commerce Department said Monday.

Sales were at a seasonally adjusted annual rate of 676,000 in June, down 6.6 percent from the revised estimate for May. June was the third month in a row in which sales of new homes declined. 

Last month’s sales were 19.4 percent lower than the June 2020 rate of 839,000. 

The median price of new houses sold in June 2021 was $361,800, Commerce said.

Home sales increased in 2020 as a result of low interest rates and a demand for larger homes amid the coronavirus pandemic. But sales have slowed in recent months as a lumber shortage and other constraints have limited the supply of homes.