New residential sales decline during June

New residential sales were down during June.According to a recent report from the U.S. Department of Housing and Urban Development, new residential sales were up throughout the country during June.Overall, sales of new single-family homes settled at a seasonally adjusted rate of 312,000 during the month, according to the agency's estimates. This total rate is 1 percent lower than the revised rate recorded in May of 315,000 units, but 1.6 percent higher than the estimate for June 2010, which was 307,000.The lower number of sales during the month came as a surprise to many economists, many of whom point to the wavering confidence of homebuilders, as they continue to compete with the low prices of foreclosed properties on the market.”You're still dealing with a supply-demand imbalance that suggests home prices will remain under pressure,” Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York, who forecast June sales at a 310,000 pace, told Bloomberg. “As unemployment stays high, it will be difficult to generate meaningful gains in home sales.”Median sales prices for these new units settled at $235,200, while the average sales price was $269,000. The seasonally adjusted estimate of new homes for sale at the end of June totaled 164,000, which represents a supply of 6.3 months at the current sales rate. This level of supply is the lowest on record, according to Bloomberg.The Houston real estate market has remained successful of the region's steady job market. A recent report from the Houston Association of Realtors revealed continued increases in sales activity during June.Courtesy of 2M Realty News?

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