Analysts Look for Slight June Uptick in New Home Sales; Supply Lowest Since 1970
Analysts expect new home sales to total 310,000 units in June, up from May's record-low 300,000, according to outlook and commentary services firm Econoday. The Census Bureau is scheduled to release its monthly new home sales data later this morning. The error ratio, however, could swing the new home sales into negative territory, month-on-month, as the possible range is listed between 280,000 to 350,000 home sales. Months' supply of new homes on the market surged to 8.5 months in May, from 5.8 months in April, due to the drop in sales, Econoday noted in commentary. But the actual number of new homes on the market was down 1,000 in the month to an adjusted 213,000 -- to its lowest level in 40 years, since 1970, the firm said. Econoday noted that lower interest rates are likely to boost sales for the June data. Employment and income growth, however, also have an impact on the decision to buy housing. Write to Diana Golobay.