WASHINGTON (AP) – Fewer Americans bought new homes in June, a possible sign that the real estate market is cooling down after months of hot sales.
The Commerce Department said Friday that new-home sales slumped 6.8 percent last month to a seasonally adjusted annual rate of 482,000. The report also revised May sales down to a rate of 517,000 from 546,000.
The June slowdown indicates the potential limits of the earlier momentum. A nearly two-year hiring streak and low mortgage rates had been spurring stronger sales through much of the year. New-home purchases have vaulted up 21.2 percent through the first half of 2015, although the government sales report is volatile on a monthly basis.
But last month’s slump could muddle expectations that the real estate sector will spur stronger economic growth in the coming months.
The median sales price has slipped 1.8 percent to $281,800 over the past 12 months. Buying fell in the Midwest, South and West, while rising sharply in the Northeast.