New Homes Sales Decline
The US Commerce Department reported Tuesday that new home sales fell unexpectedly for a second month in a row in June, declining 1 percent to an annualized pace of 312,000. The pace of sales last month was the slowest in some three months, and unexpected given that analysts expected sales to rise to a 320,000 pace. Home prices, meanwhile fell 4.5 percent on a year-to-year basis in May according to the S&P / Case-Shiller index, also released Tuesday.
Analysts caution that prices and sales will likely remain depressed for the rest of the year, at least, as foreclosures continue to hit the market and Americans remain unsure of the job market. There were 323,000 homes sold in the US, the fewest on record, and some analysts think we could break that record again this year.
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