A 6.8% plunge was seen last month in house sales to a seasonally adjusted annual rate of 482,000, though analysts still predict a good outlook for housing sector in future. The report also wrote down May sales to 517,000 from 546,000.
Home sales grew earlier this year, but this latest information calls for the needs of taking some financial actions to boost the housing sector so that the market does not cool off.
"There's no question the housing sector kicked into a higher gear in the second quarter, but this might be a dose of reality that the acceleration is not as sharp as it had looked. The outlook for housing still remains positive", said McCarthy, chief financial economist at Jefferies LLC in New York.
According to McCarthy, the US has witnessed more jobs, some better financial schemes, rise in household formation and growing affordability levels. These all are signaling good for housing sector.
The decline in the average sales price of a new house over the past 12 months accounted for 1.8% to $281,800.
The rate of house construction is slower than sales growth, which is keeping the supply tight. Buyers could get frustrated with limited options available to them, which is why there is need to expand construction at rapid pace, say experts.
Unlike a healthy market wherein at least six months supply of new home is available, the US currently has 5.4 months supply. The rate at which construction of single-family houses has grown to date is 9.1%, which is less than half the pace of sales growth for new homes.
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