New Home Sales Bounce 7% in June from Hugely Negative Revisions
The Commerce Department's Residential Sales Report shows new home sales rose 7.0% to 646,000 at a Seasonally Adjusted Annualized Rate (SAAR).
The headline numbers don’t present an accurate picture against expectations. The Econoday consensus was for 660,000 sales. Moreover, huge revisions messed up the comparisons.
The Census Bureau revised May sales to 604,000 from 626,000.
Last month, I reported New Home Sales Plunge 35.9% in the West, 7.8% Overall, Prices Down 8.1%.
I cautioned: "This report shows intense regional volatility. There may be huge revisions in the West, or other regions lower.”
New sales were down a reported 6.9 percent in April and 7.8 percent in May. I have the revised numbers as -5.0% and -8.2% respectively. So a 7% rise is nowhere near as good as it looks on the surface.
New Homes Sold and for Sale
In June, new home sales were supposedly up 50% in the West and down 26% in the Midwest.
I suspect more revisions next month.
Mike "Mish" Shedlock