Despite a positive headline figure, June’s new home sales are a wake-up call for a sector that enjoyed an otherwise solid start to 2019. Sale counts are still ahead of where they were last year, but each of the three previous month’s releases were revised down, inflating the appearance of June’s monthly gain. Prices have leveled off after steadily falling in recent months, a discouraging sign for buyers. The sector isn't out of the woods: Home construction rates have slowed recently and much of the continued growth of new home sales relies on builders putting up smaller, less expensive homes. New home sales have room to grow, but at a gradual pace. Clearly, it’s important not to glean too much from a single month’s report, given that this series often is subject to frequent revisions.
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